MANILA, Philippines (Update 1, Aug. 6, 2021, 9:31 a.m.) — AC Energy Corp. and Converge ICT Solutions Inc. will join the 30-member Philippine Stock Exchange index.
In a statement on Thursday, the operator of the local bourse said the two companies’ membership in PSEi will be effective on August 16. They will replace DMCI Holdings Inc. and Emperador Inc. following a review of the stock market indices.
Companies that qualify for inclusion in PSEi should have a free float level of at least 15%, ranks among the top 25% by median daily value for at least nine out of 12 months and has one of the highest market capitalizations. The PSE also looks into the financial strength of companies.
But perhaps the most striking result of the review was the inclusion of Converge in the main index. For the July 2020 to June 2021 review, the PSE said it also considered the “early inclusion” of large issuances, making Converge — which raised P29.1 billion during its jumbo maiden share sale in October last year — a blue chip company despite not having met the previous criterion that requires at least 12 months of trading before becoming a candidate for PSEi.
Meanwhile, an upcoming policy amendment involves requiring listed companies that want to be included in PSE indices to increase their free float level to at least 20%, from the current level of 15%, so that rules will be consistent with the requirement for firms conducting an initial public offering to have a minimum public ownership of at least 20%. The amended policy will be implemented in the December 2022 index review to give companies ample time to satisfy this criterion.
“Since newly listed companies are mandated to have a 20 percent free float level, this was a necessary adjustment to our index requirements,” PSE President and CEO Ramon Monzon said.
“Companies that want to consistently be or aspire to become part of the index should make sure that their public float complies, if not exceeds, the minimum level required by the SEC of newly listed companies,” Monzon added.
Apart from the main index, sectoral counters will also undergo a revamp.
Rizal Commercial Banking Corp. will be taken off the financials index, while the industrial index will see the addition of Alsons Consolidated Resources and the removal of EEI Corp., Shakey’s Pizza Asia Ventures Inc., and Phoenix Petroleum Philippines Inc.
AbaCore Capital Holdings, Inc. will join the holdings firms counter, while Lopez Holdings Corp. will be evicted. Two companies will leave the property index namely, Arthaland Corp. and D.M. Wenceslao & Associates Inc.
Converge and Premier Horizon Alliance Corp. will be added to the services index, replacing STI Education Systems Holdings Inc. and Harbor Star Shipping Services Inc.
Joining the mining and oil index are Atlas Consolidated Mining & Development Corp., Marcventures Holdings Inc. and Oriental Peninsula Resources Group Inc.
Article and Photo originally posted by Philippine Star last August 5, 2021 5:04pm and written by Ramon Royandoyan.
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