Share price of mobile application provider Xurpas Inc. surged 50 percent on its debut at the Philippine Stock Exchange to close at P5.95 on Tuesday, from the initial public offering price of P3.97.
Xurpas’ stock immediately reached the ceiling at the opening of trading, as total demand swelled to over 6.5 times at the end of the offering period.
Xurpas president Nico Jose Nolledo said in a news briefing following the listing ceremony the company would pursue regional expansion and acquisition following the successful IPO.
Nolledo said the company already identified and was currently assessing investment and acquisition opportunities as well as potential partners in the region.
“Our competitive edge in mobile content development and the Southeast Asian market potential of 689 million subscribers all point to the right timing to take hold of opportunities in the region,” he said.
The company is particularly keen on expansion in Thailand, Indonesia and Bangladesh.
Nolledo said Thailand had 69 million mobile phones out of 65 million population, with market penetration of 105 percent while Indonesia was about to hit 100-percent market penetration of its 237 million population.
Bangladesh also has 70 percent market penetration rate with 117 million mobile phone users out of 165 million population.
Xurpas said aside from regional expansion and acquisition, it would make substantial investments in new digital products and services, acquisition relating to existing electronic content developers and entering into strategic partnerships with industry players.
Xurpas offered 344 million primary shares, equivalent to 20 percent of the company’s total outstanding capital stock.
SB Capital Investments Corp. was the sole issue manager, book- runner and lead underwriter for the IPO.
SB Capital said by the end of the book building process, the Xurpas’ IPO shares were covered four times with strong demand from domestic and international institutional investors.
Trading participants put in orders worth 369.4 million shares or 5.4 times the 68.9 million shares made available to them.
Total order book amounted to over 6.5 times covered. Xurpas is the eighth company to be listed with the PSE this year and is the second IPO this year, after DoubleDragon Properties Inc., whose stock price hit the ceiling on first trading day. Jenniffer B. Austria
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