Internet provider Converge ICT Solutions set a cheaper price for its initial public offering (IPO), with expected high demand for its maiden stock sale.

In a letter to the local bourse on Friday, October 9, Converge said the shares are pegged at P16.80 apiece, for 1.73 billion shares between Monday, October 12, and Friday, October 16.

The target listing is on October 26.

The IPO price was near the low end of the indicative price range of P16.50 to P19. Originally, it was set at P24 per share.

After the Philippine Stock Exchange’s approval of the IPO, Converge is the the 3rd firm to go public in 2020 despite volatility brought by the coronavirus pandemic.

The broadband company could raise around P32.86 billion, if the overallotment option of 225.8 million shares would be maxed out.

The fundraising initiative will be used to accelerate Converge’s fiber network rollout, among others, as it plans to reach 55% of Philippine households by 2025.

The company, owned by Pampanga-based businessman Dennis Anthony Uy – not to be confused with Davao City businessman Dennis Uy – operates mainly in Luzon and services two million households. – Rappler.com