CONVERGE ENDS STABILIZATION ACTIVITY FOR SHARES
Converge Information and Communications Technology Solutions has informed the Securities and Exchange Commission (SEC) that its stabilization activities for the stock whose share price bombed dropping below its IPO offering price on the Philippine Stock Exchange has ended last November 24, 2020.
In a disclosure to the Philippine Stock Exchange (PSE) yesterday, Converge corporate secretary Elvira Oquendo reported that in a communication with the Securities and Exchange Commission (SEC) the stabilization activities for the equity offering of Converge Information and Communications Technology Solutions, Inc has already ended.
Stabilization activities are meant to smoothen the price of a company’s stock after undergoing an IPO. In the case of Converge, its trading performance paled in comparison to the IPO offering price of P16.80. The stock went to as low as P13.20 that had investors like TFD’s Mike Nolan Olalia worried.
In a letter to SEC Markets and Securities Regulation Department Vicente Graciano Felizmenio, Converge’s stabilization agent indicated the discontinuance of the stabilization activities.
UBS managing director Christian Wolf and executive director David Cameron Small informed the SEC :”We hereby disclose to the Commission that UBS AG Singapore Branch, as Stabilization Agent, has purchased 0 shares of Converge for stabilization purposes for the period of 23 to 24 November 2020 (inclusive).
According to Oquendo, the total number of shares purchased reached a 193,600,200 shares at an average price of P15.5962.
Data from the PSE shows that Converge hit a high of P16.98 last November 23 when it opened at P16.90 but closed at P16.62.
PSE sources say that many investors have been burned by the Converge IPO and are grumbling over the oodles of investible funds they have parted with to but the shares after getting rave reviews about the company’s potential.