FTSE 250 pro­mo­tion could be the cat­a­lyst Avast needs

AVG in­ter­net se­cu­rity firm closes in on in­dex recog­ni­tion

Shares - - BIG NEWS -

SEPTEM­BER COULD be a big month for in­ter­net se­cu­rity com­pany Avast (AVST) which looks nailed on to be pro­moted into the FTSE 250 in­dex.

The com­pany will be hop­ing that this is a step in the right di­rec­tion to­wards heat­ing up a, so far, luke­warm in­vestor re­sponse to its list­ing.

Czech Repub­lic-based Avast is one of the world’s big­gest cy­ber se­cu­rity providers to con­sumers, with more than 435m peo­ple world­wide us­ing its Avast and AVG fire­wall, an­ti­hack­ing and anti-virus tool­kits.

Maiden half year re­sults since its May flota­tion showed ‘pos­i­tive progress’, ac­cord­ing to one an­a­lyst yet the share price has re­mained stub­bornly below the 250p level at which it joined the mar­ket. They are cur­rently chang­ing hands at 246.55p but have been as low as 207p in re­cent weeks.

That im­plies a mar­ket cap­i­tal­i­sa­tion now of £2.3bn, far above the rough £800m val­u­a­tion that should guar­an­tee it en­try into the mid cap in­dex. The hope is that this will draw the at­ten­tion of new funds and re­tail in­vestors. (SF)

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