Converge ICT targets Philippines biggest IPO amid regional market revival

The Philippines’ benchmark stock index has declined 24 percent so far this year. (AFP file photo)

• Converge joins a host of Southeast Asian companies planning listings
• Seven cornerstone investors have committed to purchasing shares, including a Canadian pension fund

SINGAPORE/MANILA: Philippines’ Converge ICT Solutions Inc. plans to raise as much as $680 million in an initial public offering that would be the country’s largest ever, sources said on Monday, encouraged by a coronavirus-spurred boom in demand for fiber broadband.
Converge joins a host of Southeast Asian companies planning listings, including Thailand Siam Cement Group Packaging’s $1.5 billion IPO, signaling a revival in investor interest in region’s underperforming markets.
The Internet provider, which is banking on continued higher demand for online services as people study and work at home during the pandemic, has set the sale price at $0.3406 to $0.3922 per share, sources with direct knowledge of the issue said.
At the upper end, the IPO of up to 1.73 billion shares could raise as much as $678.6 million, including the over-subscription option. That would surpass the $627 million raised by Robinsons Retail Holdings Inc. in 2013.
“There’s quite a lot of excitement as this is one of the highest growth stories coming out of the Philippines,” said one source.
Seven cornerstone investors have committed to purchasing shares, including a Canadian pension fund, said the sources, who declined to be identified as they were not authorized to speak to media.
Converge, which lists US private equity firm Warburg Pincus as a minority shareholder, declined to comment.
The Philippines’ benchmark stock index has declined 24 percent so far this year, while Thailand’s has lost 21 percent.
However, the value of Southeast Asian IPOs is at $4.6 billion over the same period, up from $3.1 billion a year ago, Refinitiv data shows, mainly due to $3 billion raised by Thailand’s Central Retail in February.
Morgan Stanley and UBS are global coordinators for the Converge IPO, with BPI Capital and BDO Capital joint local underwriters. The final price is due to be announced on Oct. 9, with the offer period of Oct. 13 to 19.