INFORMATION technology firm AudioWav Media Inc. has pushed back its planned initial public offering (IPO) to March from late February as the company is still in the process of securing regulatory approvals from the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE).
AudioWav President and Chief Executive Officer Carlos Hinolan said the IPO will happen in March and is expected to raise up to P2.67 billion in fresh funds for the company.
For its IPO, AudioWav will offer 900 million common shares at a price range of from P1.77 to P2.96 per share.
Hinolan said most of the proceeds from IPO will be used for AudioWav’s expansion in China and Indonesia in the first half of the year, and then Thailand and Vietnam in the latter part of 2017.
The aggressive expansion is part of the company’s goal to become the first Filipino-owned multi-sensory brand in Asia, he said.
Multisensory branding is the business of creatively building a company’s brand through trademarks that will appeal to individuals’ senses through the fusion of audio, visuals and scents, among others, he explained.
“The main reason we chose to expand first in China and Indonesia was because these two countries alone represent an additional market of over 1.5 billion consumers and thousands of new potential business partners. Imagine the expansion possibilities with those numbers,” Hinolan said in a statement.
Hinolan said AudioWav is already present in various sectors, servicing companies mostly in the retail and food and beverage (F&B) segment.
With the IPO, “we hope to further penetrate multi-industries in our global expansion, targeting food, transportation, hospitality, retail, and all other industries where there is massive foot traffic,” Hinolan said.
“The IPO is just some sort of a warm-up for bigger things to come,” he said.
He said part of the IPO proceeds will go to investment in new backend data centers in certain countries where connectivity is fast and reliable.
“This will provide a more stable system, a more stable infrastructure to ensure [AudioWav] provides real-time control over its system,” he said. Currently, AudioWav partners with a company that owns servers in a data center based in the US.
After the IPO, AudioWav will have a 23.1 percent public float out its 3.9 billion outstanding shares. The offer shares will be listed under the PSE’s Small, Medium and Emerging Board, with the ticker symbol WAV. SB Capital Investment Corp. is Audiowav’s sole issue manager, bookrunner and underwriter for the IPO.
Established in 2003, Audiowav is engaged in “atmospheric branding,” offering advanced turn-key service solutions, systems, and aftersales service. It provides creative in-store entertainment, advertising, marketing and media solutions to large and small store chains in the Philippines.
The PSE earlier said it expects six to eight companies to debut on the exchange this year.