Xurpas common shares up by 49.9% on PSE listing

Mick Basa

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Xurpas common shares up by 49.9% on PSE listing
Xurpas share price jumps to P5.95 per piece in initial trading, almost half of its initial public offering value of P3.97 each

MANILA, Philippines – Mobile consumer Xurpas’ common stocks jumped by 49.87% from its initial public offering (IPO) of 344 million common shares at P3.97 ($0.889*) each.

Making its debut at the Philippine Stock Exchange (PSE) on Tuesday, December 2, Xurpas’ public equities reached P5.95 ($0.13) per share, with trade volume hitting at least 16,000 shares as of 11 a.m.

The newly-listed company is trading its 344 million shares, which represent 20% of the company’s equity.

Out of the 344 million, 68.9 million shares were offered to broker-members of the PSE, and 34.4 million shares to local and small investors.

Xurpas began offering common shares in October, after it disclosed to the Securities and Exchange Commission (SEC) it would float 20% of its total equity to finance its domestic and regional expansion, including acquisitions.

The final offer price is 5.2% is lower though compared to the P4.19 ($0.09) indicative offer price previously set by Xurpas.

Nico Jose Nolledo, president and CEO of Xurpas, said Xurpas aims to raise up to P1.24 billion ($27.72 million) of capital to expand to its core target markets: Indonesia, Bangladesh, and Thailand.

Speaking to reporters after the listing ceremony, Nolledo said the company has talked with at least 10 telecommunication companies across its core target markets.

“In able to blanket the market, you need to talk to operators,” Nolledo said.

Nolledo said they are looking at Indonesia’s 237 million population with a 100% market penetration; Thailand’s 69 million mobile phone users; and Bangladesh’s 117 million mobile phone users.

Xurpas is being traded under PSE’s small, medium, and emerging board using the code “X.”

Established in the Philippines 13 years ago by young technology entrepreneurs with a paid-up capital of P62,500 ($1,397), Xurpas specializes in the creation and development of digital products and services for mobile phone end-users.

To date, its total assets amount to P265 million ($5.92 million), with earnings of P105 million ($2.34 million) for the first half of 2014.

Its online casual games business, with operating margins of over 70%, is on track to become its largest line of business, Xurpas previously said.

Xurpas specializes in the creation and development of digital products and services for mobile end-users. It also creates, develops, and manages proprietary platforms for mobile operators.

To date, Xurpas is one of the largest independent mobile consumer content providers in the Philippines in terms of revenue. Its clients include Smart Communications, Globe Telecom, and Sun Cellular. – Rappler.com


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