Mobile content provider Xurpas Inc. said it plans to expand to emerging markets even beyond Southeast Asia over the long term following its hugely successful initial public offering (IPO) on Tuesday.
Nix Nolledo, Xurpas president and chief executive officer, said in a briefing after Xurpas’ listing that the company is looking to extend its reach to the greater emerging markets other than its plan to expand to the Southeast Asian markets, citing the big potential of the untapped region.
“We’re going to expand in emerging markets. But we take it one step at a time. Who wouldn’t want to reach 4 million subscribers in the future? But for the near to medium term, we’ll be focusing on Southeast Asia first. The emerging markets expansion is for our long term,” Nolledo said.
“Most companies in the mobile technology field don’t look at the emerging markets. They go to big markets like the US, Europe. But we have proven that there should be focus in emerging markets,” he added.
Xurpas’ market debut exceeded expectations. Its shares were 6.5 times oversubscribed at the close of its offer period last November 25, and upon listing, the stock surged nearly 50 percent to P5.95 from its offer price of P3.97 apiece.
Trading with the “X” symbol, Xurpas raised P1.24 billion from its IPO of 344 million shares, amounting to a 20 percent public float.
Xurpas claims to be the first mobile technology firm to list in the Southeast Asian region, with its IPO coming soon after Chinese e-commerce company Alibaba and Chinese online travel firm Tuniu listed in the US.
Though the company is projecting to expand in Indonesia, Thailand, Malaysia and Bangladesh next year, Nolledo said that it is in talks with “at least 10 major telecommunications giants in the region,” not limited to the four markets.
He said the company may sign partnerships with these major regional players to enter a market, or go into contract with them to set a foothold in a market.
In the first six months of the year, Xurpas more than doubled its net income to P104.8 million from P44.39 million as revenues surged to P189.6 million from P95.3 million last year.
SB Capital Investment Corp., the sole issue manager and lead underwriter of Xurpas’ IPO, forecasts that the company will increase its net income up to P379 million in 2015 due to increasing data and smartphone usage in the Philippines and in the Southeast Asian region.
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. It has two business segments: gaming and enterprise, which is focused on telecommunications solutions.
It specializes in “casual game communities” wherein prepaid subscribers can gain unlimited access to 15 games that can be played with multiple online subscribers for a minimum of P5.
Notable casual games the company has developed include Globe Games with Friends, Let’s Play Smart, and Grab-A-Gold.