Converge ICT Solutions, one of the fastest-growing ISPs in the country today is looking to expand its coverage nationwide and will be spending a fair chunk of cash expanding its reach beyond the areas they already operate in now.
The company will be spending around Php 29 billion ($600 million) to further expand their operations and reach across the country, thanks to the infusion of capital from its initial public offering (IPO) according to their CFO, Matthias Vukovich.
Currently, Converge saw a massive increase of new subscribers in the 1st half of 2020, due mostly to the demands of the enhanced community quarantine that saw millions of Filipinos suddenly transition to working and studying from home because of the COVID-19 pandemic. To put things in perspective, Converge now has around 750,000 customers from Metro Manila alone, 10 times their subscriber base in 2016.
As of last year, Converge saw significant revenue growth of 65% and with 51% margins on its earnings before interest, taxes, depreciation, and amortization. Converge stocks closed at P15.22 on Monday, 9.4% lower than its IPO price, as investors deemed it to be too pricey. Analysts earlier noted that it would have to significantly increase its revenues to match its stock price.