Converge ICT Solutions, Inc. has approved an additional P5 billion for its existing share‑buyback program, a move that signals management’s confidence in the company’s valuation amid market pressure.
The board authorized the expansion in a stock‑exchange filing on Wednesday, and analysts view the decision as evidence that the shares may be undervalued.
A senior executive at a capital firm noted that speculation over the company’s potential exclusion from the PSEi during the August rebalancing has added pressure to the stock, and the buyback expansion is seen as a countermeasure.
A sales‑trading leader at a securities firm said the expanded buyback could improve capital efficiency and support shareholder value, though it is unlikely to alter the company’s growth trajectory on its own.
He added that the buyback should enhance capital efficiency, support per‑share value creation, and reinforce investor confidence, provided the company continues to generate strong operating cash flows and maintains financial flexibility for future expansion.
For the first quarter, Converge reported a 0.66 % increase in attributable net income, reaching P3.04 billion, while revenue rose 3.61 % to P11.19 billion.
Shares closed at P9.25, up one centavo or 0.11 % on Wednesday.
