Information technology (IT) firm Xurpas Inc. announced on Wednesday that it will price its initial public offering (IPO) lower than the previously set P4.19 per share as the company prepares to debut in the stock exchange within the year.
“We will probably not price (the offer) at the maximum. We believe our investors are our partners in this endeavor and we want to share the success of our offering with them,” said Nix Nolledo, Xurpas president.
The company said it has received strong demand in its booking process ahead of the P1.44 billion IPO, which will fund its foray into domestic and regional expansion particularly in Indonesia, Bangladesh and Thailand.
The 344 million shares to be offered will be listed on the Philippine Stock Exchange on November 12, Xurpass said.
SB Capital Investment Corporation is the sole issue manager and lead underwriter, while First Metro Investment Corp. and Unicapital Inc. are co-lead underwriters, and the Philippine Commercial Capital Inc., PentaCapital Investment Corp. and Abacus Capital & Investment Corp. are participating underwriters.
The proceeds of the P1.44 billion IPO will finance the firm’s regional expansion in Indonesia, Bangladesh and Thailand (60 percent), development and expansion of existing capacities (20 percent), and general corporate purposes (20 percent).
Xurpas’ net income more than doubled to P104.84 million in the first half from P44.33 million a year ago, while revenues doubled to P189.64 million from P95.28 million last year.
“Assuming a similar performance in the second half, our annualized net income for 2014 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.