Converge’s P41.55-B IPO Approved

The initial public offering (IPO) application of Converge Information and Communications Technology Solutions Inc. (Converge) has been approved by the Philippine Stock Exchange Inc. (PSE).

Converge aims to raise PHP36.13 billion from the sale of up to 480.84 million primary shares and 1.02 billion secondary shares at a price of up to PHP24 per share.

The total amount of the IPO may go up to PHP41.55 billion through an over-allotment option.

PSE president and chief executive officer Ramon Monzon said in a statement on Thursday that the PSE is glad that Converge tapped the equities market to fill their need for capital.

“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. We are looking forward to the company’s market debut especially as demand for internet connection is expected to remain robust,” Monzon said.

October 9 will determine the final offer price after the company finishes its book building process. The offer period will be done from October 13 to 19.

Ten percent of Converge’s offered shares will be reserved for local small investors. (GFB)