FTSE 250 promotion could be the catalyst Avast needs
AVG internet security firm closes in on index recognition
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)