Converge stocks to be traded in American markets through ADRs

Stocks of local internet provider Converge ICT Solutions Inc. will soon be traded over-the-counter in American financial markets via unsponsored American Depositary Receipts (ADRs), the company announced Monday.

Based on the registration statement filed with the US corporate regulator, a total of 50 million American Depositary Shares (ADS) will be issued at a maximum offer price of $5.00 each, or a total aggregate offering of $2.5 million or P125 million.

The ADS will be traded over-the-counter in American markets under the ticket CVGY. Converge did not provide an expected timeline for the development.

“We welcome this development as it opens up another channel for US investors to invest into Converge shares,” Converge chief executive officer Dennis Anthony Uy said in a regulatory filing.

“This signals the confidence of an increasing number of investors in the continued strong growth of the company as we continue to reach the unserved areas in the Philippines,” he added.

The ADRs are registered with the US Securities and Exchange Commission, representing a negotiable security that represents a foreign company.

Being unsponsored, Converge’s ADRs are issued by a depositary bank without the company’s involvement and participation.

“The trust and confidence of our investors in Converge make us work harder towards achieving our goal of providing world-class fiber broadband connectivity to majority of Filipinos,” Converge president Maria Grace Uy said in the same filing.

“We remain committed to covering 55% of Philippine households by 2025,” she added. The company earlier said it targets between 4 million to 5 million subscribers by then.

The company reported a 158% increase in its first-half net income to P3.252 billion, up from P1.259 billion a year ago, driven by the sustained demand for internet connectivity amid the prolonged community quarantines.

Shares in the company are down 4 centavos or 1.16% to P34.10 apiece as of 10:49 a.m. Monday.—AOL, GMA News