Xurpas raises P1.2B in new capital

Rappler.com
Xurpas raises P1.2B in new capital
The new capital will give the firm the opportunity to rapidly expand, says CEO Nix Nolledo

MANILA, Philippines ­– Consumer tech firm Xurpas (PSE: X) raised P1.2 billion in fresh capital following an accelerated overnight share placement, said the company on Tuesday, April 26.

Xurpas’ founders and 3 largest shareholders each sold 51.8 million common shares representing a total of 9% of Xurpas’ outstanding and issued share capital with a value of around P2.5 billion to Philippine and international institutional investors.

The selling shareholders, however, subscribed to a total of 77.7 million Xurpas common shares representing a combined 4.3% of the enlarged stock. Each purchased 1.4% of the newly issued common shares.

The result is that they now own an aggregate 69% of Xurpas’ total issued and outstanding share capital.

The offer shares were priced at a 7.6% discount to the April 25 closing price of P17.32 per share and at an 11.9% discount to the 30-day average price of P18.15 per share as of April 25.

The move increased Xurpas’ public float from 20% to approximately 28%. By increasing the public float, this overnight placement increases liquidity in Xurpas’ stock and will allow a larger group of investors to invest in the company.

Funding growth

The firm disclosed that the increase in capital was done to support growth strategy, as well as fund its capital expenditure and general corporate purposes.

“This fresh capital will give us the opportunity to strengthen our efforts to rapidly expand not only to other markets, but in the new business verticals that will drive our continued growth,” said Nix Nolledo, CEO of Xurpas.

The firm saw its net income rise by 20% in 2015, driven by a 135% increase in revenues through mobile purchases and despite a slew of new investments overseas. – Rappler.com

 

Editor’s note: Nix Nolledo is a member of Rappler’s board.

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