Leading fiber broadband provider Converge ICT Solutions Inc. (PSE: CNVRG) has officially joined the basket of blue-chip companies, the Philippine Stock Exchange Index (PSEi), on Monday, having qualified for early inclusion after passing the criteria set by the Philippine Stock Exchange (PSE) in its amended index management policies. Converge is also now included in the PSE Services Index.
Converge closed at P 27.00 on Monday, with a market capitalization of P 205.4 billion. The fiber broadband operator hit its all-time intraday high on Friday at P 29.05 per share.
For the July 2020 to June 2021 review, the local bourse considered ‘early inclusion of large issuances’ to align with the global standards adhered to by peer indices.
“It’s an honor for us to be considered among the most valuable and stable companies in the country. Being part of the market barometer reflects our company’s even footing in the market, and how much that’s valued by the public,” said Converge CEO Dennis Anthony Uy.
“With our inclusion in the PSEi, we hope to contribute in giving a balanced outlook of the broader economy,” added Converge President Grace Y. Uy.
The PSE approved several amendments to its index policies, one of which was that companies with a trading history of six months will be eligible for early inclusion, provided that the market capitalization is ranked at least in the 25th position at the end of the review period, subject to meeting the free float and liquidity criteria. Previously, the requirement imposed by the PSE was a trading history of at least 12 months without possibility of early inclusion.
With its entry into the benchmark index, Converge will be entering the portfolios of passive investors who peg their shareholdings with the index.
The fiber broadband provider reported a net income of P3.25 billion in the first half of this year during its earnings call Thursday, 158% up from P1.26 billion booked in the comparable period in 2020.
Converge was listed on the PSE on October 26,2020, at an initial public offering (IPO) price of P 16.80 per share, with a total offer size of P 25 billion, in one of the country’s biggest IPO at that time.