Converge ICT Solutions Inc. said on Wednesday the Financial Times Stock Exchange (FTSE) has raised its investability weight, as it increased its free float following the sale of Warburg Pincus’ shares in the Filipino broadband operator.
The heavier FTSE investability weight will further improve the visibility of Converge to both passive and active investors, Converge President and Co-Founder Grace Uy said.
“We are inspired to do better as the increase in our investability weight also means greater responsibility to deliver value to our investors and customers,” she said.
Converge’s public float rose to 26 percent from 20.4 percent last week, as Coherent Cloud Investments, a unit of Warburg Pincus, sold 420 million of its Converge shares for P12.6 billion.
The increase in free float will strengthen Converge’s bid to be included in the Morgan Stanley Capital International (MSCI) index, a move that will further raise Converge’s exposure to a broader investor base.
“More importantly, we are eager to welcome new partners in realizing our vision of reaching the unserved and underserved communities in the Philippines and provide them with world-class internet connectivity through pure fiber technology,” Uy said.
In January to September, Converge more than doubled its net income to P5.20 billion from P2.19 billion, owing to its strong revenue growth and the effect of a new tax law.
Its consolidated revenues surged by 76.4 percent to P18.31 billion from P10.68 billion driven largely by its residential business and complemented by its enterprise segment.
Currently, Converge has 1.5 million subscribers.