PH broadband services player Converge ICT picks banks for $700m IPO

FILE PHOTO: A trader walks past the electronic board of the Philippine Stock Exchange in Makati city, Metro Manila, Philippines June 27, 2016. REUTERS/Romeo Ranoco

Converge ICT Solutions Inc., a fiber-optic broadband services provider in the Philippines, has selected banks for its planned domestic initial public offering that could raise about $700 million, according to people familiar with the matter.

Bank of the Philippine Islands, BDO Unibank Inc., Morgan Stanley and UBS Group AG are working with Converge ICT on the share sale, said the people, who asked not to be named as the information is private. A listing by the Warburg Pincus-backed company could take place as early as this year, the people said.

At $700 million, Converge ICT’s IPO could be the biggest ever in the Philippines, according to data compiled by Bloomberg. The Southeast Asian nation hosted only one IPO so far this year, grocer MerryMart Consumer Corp., which raised about $31.5 million in May. The coronavirus outbreak and a 21% decline in the country’s benchmark index this year have dampened investor sentiment.

Deliberations around Converge ICT’s share sale are ongoing and details of the offering could still change, said the people. Representatives for BDO, Morgan Stanley, UBS and Warburg Pincus declined to comment, while representatives for BPI and Converge ICT didn’t immediately respond to requests for comment.

Converge ICT, whose fiber network is limited to the main island of Luzon and covers two million households, plans to expand nationwide by 2021 and boost its international bandwidth. The company expects broadband penetration to double over the next five years from less than 15% of households currently, Chief Executive Officer Dennis Anthony Uy said in an interview in June.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.