PSE okays IP-Converge initial public offering

MANILA, Philippines – IP Converge Data Center Inc., the information technology and telecommunications subsidiary of publicly-listed conglomerate IPVG Corp., has secured approval from the Philippine Stock Exchange (PSE) for the initial public offering (IPO) of its shares to raise up to P400.1 million in proceeds.

In a statement, IP-Converge said the offer period will be on the latter part of November 2010, while target listing date will be on the first half of December 2010. The company is offering 45.467 million common shares at an offer price of up to P8.80 per share.

Post-IPO, IP-Converge’s total issued and subscribed shares will reach 181.867 million.

IP-Converge has assigned BDO Capital and Investments Corp. as lead underwriter and issue manager, and Unicapital Inc. as co-lead underwriter and financial advisor for the IPO.

The company said the offer proceeds will be used to fund its data center and network expansion in Fort Bonifacio and Cebu City; the expansion of its managed services business segment; the professional services business segment expansion; and for minor acquisitions and general working capital requirements.

“IP-Converge has the best of both worlds. It has the stability and predicability of a utility company, while having the underlying growth prospects of an information and communications technology (ICT) player. With the upcoming IPO and listing, IP-Converge is very well positioned to capture ICT opportunities in the Philippines. The proceeds will fuel our customer demand-driven expansion and will further strengthen our presence in this sector.

We look forward to sharing our success with the investing public,” IP-Converge chairman and IPVG chief executive officer Enrique Y. Gonzalez said.

“We’re very excited about this new endeavor that we will be embarking on,” added IPConverge president Reynaldo R. Huergas.

“Over the years, IP-Converge has matured to become a pillar of strength under the IPVG umbrella. And now that the company will be taking flight, we feel a sense of pride and enthusiasm for what’s to come. IP-Converge will continue to expand and flourish, as we enable our customers to grow their business and achieve financial success.”

IP-Converge is an IT&T company that provides a wide array of managed data services and business solutions at international standards.

An ISO 9001:2008 certified company, the foundation of the company’s business is centered on customer satisfaction through highquality on-time delivery, the implementation of best business practices, and a personalized, “boutique” approach to clients.

IP-Converge operates a telco-grade Internet data center facility in the Philippines that connects to the world through the company’s international PoP (point of presence) in Hong Kong. IP-Converge upholds its carrier and vendor-neutrality by peering with all major Internet exchanges in the Philippines and the Asia Pacific region, and by partnering with the world’s leading hardware and software providers.

Through its robust international network infrastructure and business relationships with global industry giants, IP-Converge is able to offer world-class IP-based solutions and services in the region.