The Philippine Stock Exchange (PSE) on Thursday, October 1, approved the P41.55-billion initial public offering (IPO) of Converge Information and Communications Technology Solutions, as internet usage booms during the coronavirus crisis.

Converge, which will list on the PSE’s main board, aims to raise P36.13 billion from the sale of up to 480.84 million primary shares and 1.02 billion secondary shares at a price of up to P24 per share. 

With its overallotment option, the amount of the public offering may go up to P41.55 billion.

The funds, Converge said, would be used to accelerate its fiber network rollout, among others.

The final offer price will be determined on October 9, while the offer period will be from October 13 to 19.

Of the offered shares, 10% will be reserved for local small investors (LSIs). 

Interested LSIs may subscribe to the IPO through the PSE EASy website or mobile app.

The company’s estimated public float will be at 23%, assuming the overallotment option is fully exercised.

Converge’s stock symbol was not yet disclosed.

“We are glad that Converge chose to tap the equities market to raise funds for its capital expenditures. Internet connectivity is a prime service at this time, with online classes and work-from-home arrangements due to the pandemic,” said PSE president and chief executive officer Ramon Monzon.

Converge said it is the fastest-growing fixed broadband operator in the Philippines, capturing 59% of the total new fixed broadband subscriptions. – Rappler.com