Converge passes IPO hurdle

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    Internet provider Coverge Information and Communications Technology Solutions Inc. (Converge ICT) has passed the scrutiny of the Securities and Exchange Commission (SEC) for its planned P41.55-billion initial public offer (IPO).

    This comes as the Philippine Stock Exchange (PSE) announced it will be revising some requirements that a company must meet before it can push through with their IPOs.

    The SEC said it has “considered favorably” Converge ICT’s IPO plans where it will offer to the public 1.5 billion primary and secondary shares covering the initial offer and another 225.79 million shares for the greenshoe option at P24 apiece.

    This is an upgrade from the company’s previously-announced P36-billion IPO divided into 1.3 billion primary and secondary shares covering the initial offer and another 195.19 million shares for the overallotment option, also at P24 apiece.

    From the primary offer, Converge expects to raise about P11.07 billion.

    Meanwhile, Ramon Monzon, PSE president, said under the revised rules for applying to list in the PSE’s “main board” the market capitalization test will be removed but the company must satisfy both the profit and minimum total stockholders’ equity requirements.