INTERNET provider Converge ICT Solutions Inc. is set to join another highly watched equities index series, the Financial Times Stock Exchange (FTSE) Global Equity Index, following the global financial benchmark provider’s semi-annual review of the index this September.
Converge is the only Philippine company to be added to the Small Cap Index of the FTSE Global Equity Index Series (GEIS) in this most recent review. The index inclusion will take effect after the close of business on September 17, 2021.
“We’re pleased to be included in this roster of valuable and viable securities in the region. This will lead to more exposure to passive and active investors, and for them, a more diversified portfolio in a promising industry in this region,” Dennis Anthony Uy, chief executive officer and co-founder of Converge, said.
“This inclusion is further testament of our growth and standing in the Philippines telecommunications industry,” said Grace Uy, Converge president and co-founder.
Securities are included in the Global Equity Index Series after passing the criteria on minimum voting rights, investability weight, liquidity, and trading history set by the FTSE. It is then classified by investability market capitalization by region, to determine if they belong to the Large, Mid, Small, or Micro-Cap Index.
Aggressive expansion
The GEIS was created by the FTSE to be used as benchmarks for investment funds, exchange traded funds, and other financial products. The indices, therefore, stand as proxy for the market they represent and the securities therein are considered as stable indicators for their respective industries.
The GEIS-Global Small Cap Index, as of July, comprises more than 5,000 constituents worldwide.
Converge has been aggressively expanding its pure fiber broadband network to reach the underserved and unserved areas in the Philippines, with a goal to cover 55 percent of total households by 2025. As of end-June 2021, the domestic fiber network of Converge has passed 8.3 million homes or 32.5 percent of total Filipino households, as it begins to service Visayas and Mindanao this year.
The fiber broadband provider’s stock price has risen by 108 percent as of end-August from the start of the year, bringing its market capitalization to P 233 billion.
Earlier this year, Converge also joined two other FTSE Index Series, the Renaissance IPO Index and the Asean All-Share Index, increasing its exposure to passive and active investors.
Converge was also recently included in the benchmark 30-company Philippine Stock Exchange Index (PSEi) which groups the largest, most valuable, and most liquid companies in the local exchange.