Soon-to-be-listed mobile content provider Xurpas, Inc. has set the price of its initial public offering (IPO) at P3.97 per share after securing a nod for its debut next week from the Philippine Stock Exchange (PSE).
The final price is lower than the P4.19 quoted earlier. The sale period is set on November 17 to 25, and the listing date target is on December 2.
In a notice filed with the PSE late Friday, the company said it can raise P1.37 billion from the IPO by setting the price at P3.97.
Xurpas said there is strong demand for its maiden share sale. It is offering 344 million common shares, which is about 20 percent of the firm’s issued and outstanding capital.
The P1.37 billion from the IPO will go to Southeast Asian expansion (60 percent), development of games and other content (20 percent), and for working capital (20 percent). The firm plans to expand in Indonesia, Thailand, Malaysia and Bangladesh next year.
At the investors briefing on Friday, Xurpas President and CEO Nico Jose Nolledo said its expansion in four countries will allow the company to register “about 680 million SIM cards. A lot of them are prepaid subscribers and we see it as an evergreen opportunity.”
“About 95 percent of our target market is prepaid consumers,” Nolledo explained.
Asked why the company decided to go public, Nolledo said: “Admittedly it wasn’t really planned in one day that we will IPO. From a business perspective, I can’t name a company listed in Southeast Asia like us and I say it’s really an evergreen space to deploy our products and services.”
Xurpas’ net income more than doubled to P104.84 million in the first half of the year from P44.33 million last year due to surging revenues that doubled to P189.64 million.
SB Capital Investment Corp. is the sole issue manager and lead underwriter for the offering, with First Metro Investment Corp. and Unicapital Inc. joining as co-lead underwriters. Philippine Commercial Capital Inc., PentaCapital Investment Corp., and Abacus Capital & Investment Corp. were tapped as participating underwriters.
“Assuming a similar performance in the second half of this year, our annualized net income for the full year would be around P210 million from revenues of around P380 million,” Nolledo said.
Xurpas is a technology company specializing in the creation and development of digital products and services for mobile end-users, as well as the creation, development and management of proprietary platforms for mobile operators. Kristyn Nika M. Lazo