Converge debuts as biggest IPO in PSE
The Philippine Stock Exchange, Inc. (PSE) hosted a bell ringing ceremony for the debut of Converge Information Communications Technology Solutions, Inc. (Converge), which recently concluded the biggest initial public offering (IPO) in the local equities market. The fixed broadband service provider sold Php29.08 billion worth of shares during the offering, including primary and secondary shares and its over-allotment option.
“The PSE is pleased to have served as a capital raising channel for Converge. The funds secured from this IPO, which will be utilized for network expansion, will help the company further solidify its position in the industry,” said PSE President and CEO Ramon S. Monzon in his welcome remarks during the listing event.
“The new normal ushered an all-online era with people working from home, students in online learning mode, and e-commerce being the main platform of trade and business. This pandemic-induced lifestyle underscored the digital divide that has long plagued the country. We hope that addressing this concern may be fast tracked with Converge among the companies at the forefront of bridging this digital gap by serving the need for fast and stable fixed broadband service,” Mr. Monzon added.
Department of Finance Secretary Carlos G. Dominguez III said in his keynote message, “This initial public offering, therefore, is very, very timely. It will provide Converge with the means to rapidly upgrade its equipment and improve its operations. The whole nation relies on services that companies like Converge offer to continue our youth’s education, save enterprises, and retain and create jobs for the Filipino workers. I encourage Converge to use the proceeds of this public offering to continue investing in network improvements to serve more Filipinos nationwide.”
For his part, Securities and Exchange Commission Chairperson Emilio B. Aquino said, ““This event shows that the Philippine economy, despite the ill effects of the COVID-19 pandemic continues to attract foreign investors with risk capitals that seek proportionate returns. Please note that 70 percent of the IPO amount came from discriminating foreign institutional investors. Mr. Aquino added, “This event shows that the Philippine capital market can provide a source of funding for corporates that seek capital to finance even ambitious through viable projects.”
A recorded message from Department of Information and Communications Technology Secretary Gregorio B. Honasan was also shown during the event.
Photo shows by row: SEC Chairperson Emilio B. Aquino; (from left) Converge Founder and CEO Dennis Anthony H. Uy; Department of Finance Secretary Carlos G. Dominguez III, PSE President and CEO Ramon S. Monzon and PSE COO Roel A. Refran; Converge COO Jesus Romero, Comclark Network and Technology Corporation Director Jaime Uy and UBS Philippines Managing Director Lauro Baja.