Converge inspires MSMEs, start-ups in SEC roadshow promoting different channels of capital-raising activities

By: Converge Admin | 19 Oct 2023

Converge ICT Solutions Inc., the fastest growing broadband operator in the Philippines, joined hands with the Securities and Exchange Commission (SEC) in encouraging small-scale businesses and start-ups to access the capital market to address their financing needs.

In the Baguio leg of the SEC’s roadshow on capital formation for micro, small, and medium enterprises (MSMEs) and start-ups, the SEC encouraged business owners to secure funding through capital market-based services such as public offering, crowdfunding, and private placements, among others.

Converge inspires MSMEs, start-ups in SEC roadshow promoting different channels of capital-raising activities
“You’re never ready until you try. At Converge, when we started, we thought we were prepared but it still took more time with our underwriters and consultants. If you think you’re prepared at a certain point, explore pitfalls you may have, and address those. Once you have improved those, that’s when you can say you are ready,” said Ocampo on determining a business’ readiness to go public.
IN PHOTO: Converge Investor Relations Head Ocampo (second from right) with (from left) SEC Baguio Extension Office Director Atty. Regina May Cojucom-De Guzman, Philippine Stock Exchange (PSE) Chief Operating Officer Atty. Roel Refran, and Investment and Capital Corporation of the Philippines (ICCP) Senior Managing Director Manny Ocampo.

Converge Vice President and Head of Investor Relations Owen Kieffer Ocampo inspired local entrepreneurs by sharing how Converge accelerated business growth by offering shares to the public, highlighting the boosts gained by the company when it braved the pandemic crisis and had its initial public offering (IPO) in October 2020.

“A lot of work goes into conducting the IPO but the long-term benefits definitely compensate for it. First, you will have access to lower cost of capital, and you will have the capability to accelerate growth with the funding generated in your IPO,” he said.

Converge raised P25.3 billion ($523 million) in one of the country’s largest recent IPOs at that time. Leveraging these funds, together with its other sources of capital, Converge was able to expand its infrastructure from around 3.5 million ports in 2020 to 8.7 million ports nationwide – currently the most extensive in the country. More significantly, Converge earned the name of being a nationwide company – extending its fiber backbone from Luzon to major islands in Visayas and Mindanao – through the major capital infusion provided by the IPO.

“In just two years from the IPO, we were able to expand our network nationwide to serve underserved and unserved areas in VisMin. We have also doubled our port count and we are now focused on utilizing these assets to serve the unserved and underserved,” Ocampo added.

Owen Kieffer Ocampo
Converge Vice President and Head of Investor Relations Owen Kieffer Ocampo has underscored the opportunities in going public as he shared the IPO journey of Converge to more than 140 MSMEs and start-ups in the Cordillera and Ilocos region.

Aside from connecting households, Converge has also been uplifting the MSME sector as part of its vision to empower the nation to be its best. Through Converge Business, the company enables small businesses through innovative connectivity products such as flexiBIZ; it empowers medium and large enterprises with value-added services such as Converge Workplace solutions like SweldoMo, and the Hotel Management software. For all sizes of businesses, Converge also offers device solutions, for better business productivity.

Meanwhile, SEC Market and Securities Regulation Director Vicente Graciano Felizmenio Jr. said there is an estimated $220 billion credit gap for MSMEs in the country, based on a report from the Asian Development Bank (ADB) and International Finance Corporation (IFC).

This was despite their substantial contributions to the economy, making up 99.5 % of local businesses, and accounting for 63% of the local workforce and 40% of the country’s gross domestic product (GDP).

“We want to show MSMEs and start-ups that there are other sources of financing that they could tap and it is the capital market. We want them to grow as a business so we present to them the options and they make the decision,” he said.

Through the Office for the Advancement of Strategic Investments in SMEs (OASIS), the regulatory commission promotes alternative financing options for small-scale enterprises and start-ups, helping them secure financing through the capital market.

For more information on Converge, visit www.convergeict.com.

TAGS: Owen Kieffer Ocampo, Securities and Exchange Commission,

Related Articles

Ookla® Bears Witness to Exceptional Converge Network

Leading fiber broadband provider Converge ICT Solutions Inc. took the platform to showcase its superior and multi-awarded network on the occasion of a visit by the global CEO of network intelligence and connectivity insight firm, Ookla®, to its headquarters. On April 4, 2024, Ookla President and CEO Stephen Bye was warmly received by the top […]

Learn More

Converge Extends Free Speed Boost to Customers

  They say “Don’t believe everything you see online” on April 1, otherwise known as April Fool’s Day, but on this day of mischief and pranks, leading fiber broadband provider Converge ICT Solutions Inc. is jumpstarting April Fool’s Day festivities with a serious announcement that it’s extending its free speed boost to its existing customers […]

Learn More