Converge ICT Solutions Inc. yesterday said it will soon be traded in the US financial markets in the form of unsponsored American depositary receipts (ADRs).
This will allow US investors to invest in Converge shares.
“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 and underserved areas in the Philippines,” said Dennis Anthony Uy, Converge chief executive officer.
An ADR is a negotiable security that represents securities of a foreign company and allows that company’s shares to trade in the US financial markets. ADRs represent an easy, liquid way for US investors to own foreign stocks.
An unsponsored ADR is issued by a depositary bank without the involvement, participation or consent of the foreign company it represents ownership in.
Based on the F-6 registration statement filed with the US Securities and Exchange Commission, the total American depositary shares (ADS) registered amounted to 50 million ADS for a maximum offer price of $5 each or a total aggregate offering price of $2.5 million (approximately P125 million).
