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Grace Uy: Converge No. 2 shareholder selldown good for company

Ralf Rivas

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Grace Uy: Converge No. 2 shareholder selldown good for company

TELCO EXEC. Converge ICT Solutions co-founder and president Grace Uy.

Converge ICT Solutions

Converge president Grace Uy says Warburg Pincus' block sale increases the company's public float and helps it in its goal to be included in the MSCI index

Converge ICT Solutions’ second largest shareholder sold shares on Friday, November 19, through a block trade, bringing its stake down to 10.25% from 15.8%.

Coherent Cloud Investments, which is controlled by private equity firm Warburg Pincus, sold 420 million shares at P30 apiece or a total of P12.6 billion.

Morgan Stanley and UBS were joint bookrunners for the sale.

In an interview with Rappler’s Business Sense recorded last Friday, Converge co-founder and president Grace Uy said the selldown was good for the company.

“That actually helps the company in the sense that there’s more public float. Before the IPO (initial public offering) you only did like 20% public float, but because Warburg sold some of their holdings, then we’re reaching the 26% public float,” Uy said.

Grace Uy: Converge No. 2 shareholder selldown good for company

Uy further explained that the higher public float would help get Converge into the MSCI (Morgan Stanley Capital International) index.

“It’s helpful because of course we want to get in the MSCI index and part of the requirement is a bigger public float, so it’s actually very helpful,” she said.

Converge was earlier added to the Financial Times Stock Exchange Renaissance IPO Index and the FTSE ASEAN All-Share Index.

Converge was also included in the Philippine Stock Exchange index last August.

Uy added that Warburg Pincus continues to bring “a lot of value” to the company.

Watch the full interview with Uy on Business Sense, airing Monday, November 22, 7 pm. –

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Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.