The Philippine Stock Exchange Inc. (PSE) has approved the initial public offering (IPO) application of broadband provider Converge ICT.
The company, owned and controlled by Pampanga-based businessman Dennis Uy, is aiming 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 over-allotment option, the amount of the public offering may go up to P41.55 billion.
“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,” PSE president and chief executive officer Ramon Monzon said in a statement Thursday, Oct. 1.
The final offer price will be determined on October 9 after the company conducts its book building process. Converge ICT will hold the offer period from October 13 to 19.
Ten percent of the offered shares of the company will be reserved for local small investors (LSIs), who may subscribe to the IPO through the PSE EASy website or mobile application.