The issue of telcos is quite a sour point when it comes to Filipinos who are on lockdown and in search of a reliable internet provider. During the 2016 campaign, President Rodrigo Duterte promised faster internet to the public. His administration has also been pressing PLDT Telecommunications Company/Smart Communications and Globe Telecoms to improve their services.

Converge ICT Solutions Inc is attempting to bridge these gaps and is set to sail through its Initial Public Offering (IPO).

The fact is Converge is a class of its own. Comparing it to PLDT or Globe would only be for vanity’s sake as Converge ICT is purely a fixed broadband. The two telcos only have 30 to 40 percent of their business in broadband and both have other businesses not related or indirectly related to it.

The IPO of Converge is a landmark transaction. It is the largest ever IPO in the country (in PH Peso terms) and the largest ever telecoms IPO in Southeast Asia. It is also worth noting that it is the largest fixed broadband offering globally since 2017.

The IPO price is at a significantly below fair value. Eduardo Francisco, President of Banco de Oro Capital & Investment Corporation (BDO Capital), was previously cited as saying that the margins are higher and growth is expected to double every year.

Genesis, Macquarie, and Omers and Thornburg were also listed as cornerstone investors in the latest prospectus. The orderbook of the IPO was well subscribed before the initial retail offering period. It has already secured more than P4.5 Billion of domestic demand which makes the stock one of the largest domestic take-ups for an IPO.

This is also consistent with their ground activities and operations as Converge is the fastest-growing and only pure-play fixed broadband operator with an extensive, proprietary end-to-end fiber broadband infrastructure. The next several years would see significant growth and the time for investment is now.

The Philippines is one of the most underpenetrated fixed broadband markets in the region despite us spending around 10 hours a day online. Social media and the pandemic have created a demand and Converge’s timing of an IPO is nothing short of perfect.

The success of Converge’s growth will also move the country forward in having the ability to improve our systems and connect to an isolated global online community and use that opportunity to be more useful as a society.