Xurpas to raise P1.4B funds through IPO
MANILA, Philippines – Xurpas Inc., one of the country’s largest independent mobile consumer content providers, is planning to raise as much as P1.44 billion ($32.95 million*) through an initial public offering (IPO) slated in October.
Documents filed with Securities and Exchange Commission (SEC) showed that Xurpas would offer 34.3 million primary common shares for up to P41.86 ($0.96) per share.
The offer shares represent 20% of the company’s outstanding common shares.
Proceeds from the offering will be used to for domestic and regional expansion, and acquisitions.
The company hired SB Capital Investments Corporation to be the issue manager and lead underwriter for the offer.
The offer period will run between October 15 and 28. Listing has been tentatively set on November 5.
Xurpas was founded by 3 young technology entrepreneurs – Nico Jose Nolledo, Raymond Gerard Racaza, and Fernando Jude Garcia.
The company specializes in the creation and development of digital products and services for mobile phone end-users. It also creates, develops, and manages of proprietary platforms for mobile operators.
Xurpas also offers complete portfolio of products, including online casual games, messaging and other social discovery applications, as well as various forms of mobile commerce.
Its clients include top telecommunications companies, namely, Smart Communications and Globe Telecom.
Xurpas said its success in mobile content and services, particularly its online games, enabled it to achieve 75% revenue growth and 42% average earnings growth from 2011 to 2013.
“For 2014, the company believes that its online casual games business, which has operating margins in excess of 70%, in on track to become the company’s largest line of business,” Xurpas said.
As of end-June, the company had revenues of P189 million ($4.32 million) and net income of P105 million ($2.4 million).
Two more companies filed IPO applications with the SEC this month. They are SSI Group Inc., a leading specialty retailer of international brands owned by the Rustan’s Group of Companies, and Amicus Holdings Inc., a property developer. – Rappler.com
($1 = P43.69)