Technology

Over 2x oversubscribed in roadshow: Converge to raise P25.2 to P29.1B with IPO pegged at P16.80

Bilyonaryo Dennis Anthony Uy is more than happy with the foreign reception for the gargantuan initial public offering of his broadband services baby Converge ICT Solutions Inc. amid the pandemic and the US presidential elections in November.

Converge was oversubscribed by over two times and the roadshow closed a day ahead of schedule after the issuer pegged the IPO price at P16.80, which is at the low end of its indicative price range of P16.50 and P19 per share.

A source from Uy’s camp said Converge could have gunned for a higher price but it decided to settle at P16.80 to provide additional buffer for market volatility, considering the two-week gap between pricing and listing on October 26.

The local offering will run from October 12 to 16 with a P1 million cap for each small, local investor.

Converge will raise P25.2 billion to P29.1 billion from the sale of 1.73 billion shares (including over allotment of 220 million shares) of which nearly two-thirds are owned by Uy and his financial backer, Warburg Pincus.

Post-IPO, Uy will retain 64 percent and Warburg, roughly 16 percent. The remaining 30 percent of the IPO funds will be used to bankroll Converge’s $1.8 billion fiber network rollout nationwide.

The top 10 investors of Converge’s IPO will account for two-thirds of the maiden offering. Some of its cornerstone investors are Genesis Investment Management LLP, Ghisallo Master Fund LP, Macquarie Funds Management Hong Kong Limited, Magna New Frontiers Fund, Oaks Emerging and Frontier Opportunities Fund, OMERS Administration Corp., Segantii Asia-Pacific Equity Multi-Strategy Fund and Thornburg Investment Management Inc.

It will be the largest IPO in the Philippines in peso terms, the largest telecom IPO in Southeast Asia and largest fixed broadband IPO in the world.

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