Xurpas Inc. wants to raise approximately $70 million (P3.3 billion) from a mix of equity offerings next year to be able to keep up with its regional expansion plans.
Emilio Federico “Ricky” Galang, president of SB Capital Investment Corp., told reporters on Thursday that Xurpas wants to do multiple equity fundraising before the May 2016 elections to “replenish its fund” for expansion deals across the Association of Southeast Asian Nations (Asean) region.
“They’re growing fast, [with]acquisitions. They’re going to need money. It may be top-up or combination of secondary—any combination—as long as there will be primary to replenish their funds,” Galang said.
“[It would be] around another 10 percent float, about $70 million. That should be substantial enough for new liquidity, for foreign fun2ds . . . It has more sense to do it before elections next year,” he said.
As of end-September, Xurpas did seven acquisitions across the region worth P1.246 billion—excluding a convertible financing investment of $500,000 (P23.3 million) with Singapore-based technology solutions provider Einsights Pte. Ltd.
Xurpas has completed seven acquisitions so far, including a 51-percent stake in Globe’s Yondu Inc., a 70-percent stake in Seer Technologies Inc., a 4.5-percent stake in California-based search engine specialist Quick.ly Inc., a 31.52-percent stake in Singaporean game developer MatchMe Pte. Ltd., a 49-percent stake in Indonesian IT firm PT Sembilan Digital Investama, a 51-percent controlling stake in employee benefits management firm Storm Flex Systems Inc., and a 21.7-percent interest in Singaporean IT firm Altitude Games PTE Ltd.
SB Capital earlier set a P379-million net income guidance for Xurpas this year, but the mobile content and game developer grew its net income by only 10 percent to P162.38 million in the first nine months from P147.48 million a year earlier.