Converge declines as it starts trading at PSE

October 26, 2020

Converge Information and Communications Technology Solutions Inc.  declined as it made a long-awaited initial public offering at the Philippine Stock Exchange (PSE) index on Monday where it was the day's most traded stock.

Converge ICT Solutions closed P1.52 lower to end at P15.22 after falling by as much as 10 percent at the start of trading. It drew 229, 736, 803 shares valued at P3.65 billion.

The initial public offering of Converge ICT Solutions, which seeks to fund an expansion of its internet backbone, is the second highest in PSE history. It offered 1.51 billion common shares at P16.80 in its October 16 initial public offering.

Dennis Anthony Uy, chief executive officer of Converge ICT, told ANC the company seeks to connect more Philippine households through broadband-fiber optic.

Uy said in the present pandemic situation Converge ICT Solutions saw 70,000 to 80,000 new connections '' as people work, study and entertain at home.''

''Traditional low tech broadband not enough to meet data needs today,'' said Uy.

By 2021 first to second quarter, Converge ''would be done setting up backbone in VisMin,'' said Uy.

By 2025, Converge is expecting to connect 55 to 66 percent households, said Uy. ''That's 18 million homes. We will set up 8 million ports ready to service,'' he said.

The PSE index closed 7.13 points higher to end at 6,491.19. In the broader market, there were 107 losers, 102 gainers and 44 unchanged.

Volume reached 2.7 billion shares worth P31.09 billion.

The peso closed at P48.395 against the US dollar from Friday's P48.48. Volume at the foreign exchange portal of the Bankers Association of the Philippines reached $671.25 million from Friday's $889.6 million. DMS