(Bloomberg) -- Converge Information and Communications Technology Solutions Inc., a fast-growing Philippine provider of fixed broadband services, aims to raise as much as $725 million in a maiden share sale in October.
The company will use the proceeds to fund capital expenditure and help accelerate its nationwide fiber network rollout, according to a preliminary prospectus filed with the Philippine SEC.
“The Philippine fixed broadband market is currently at an inflection point, with demand for broadband subscriptions expected to increase as supply continues to meet the significant latent demand,” Converge's investor Warburg Pincus said in a statement.
Morgan Stanley, UBS Group AG, BDO Unibank Inc., Bank of the Philippine Islands will arrange the share sale, confirming a Thursday report by Bloomberg. At its maximum size, Converge ICT's maiden share sale would be the largest Philippine IPO.
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Other Highlights:
- The plan is to sell as many as 1.30 billion shares with 195.19 million shares over-allotment option at a maximum price of 24 pesos each. Offer period will be from Oct. 13 to 19 and listing on Oct. 26
- Shares to be sold will comprise 415.68 million primary shares and 1.08 billion secondary shares by Comclark Network and Technology Corp. and Coherent Cloud Investments B.V.
- Converge added about 60,000 new residential subscribers in June, beating the record 50,000 set in May and bringing total home subscribers to about 750,000
- Its fiber network of more than 30,000 kilometers could reach about 4.1 million homes in the main island of Luzon as of March 31
- The Philippines' fixed broadband penetration is significantly behind regional peers at 14% overall and only 6% on high-speed broadband
Story Link: Converge ICT Seeks to Raise $725m in Largest Philippine IPO
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