Cashrounds sets initial public offering

Cashrounds Inc., an online matchmaker for companies looking for private equity financing from institutional investors, is braving the equities market with its planned initial public offering (IPO) next month of P8-million worth of its shares.

Following the approval of its listing application, Cashrounds has set its IPO July 2-8, with its listing tentatively scheduled on July 23. The shares will be listed at the PSE’s Small and Medium Enterprise (SME) board at its offer price of P1 each.

A wholly-owned subsidiary of investment house Amalgamated Investment Bancorporation (AIB), cashrounds will offer a total of eight million shares, representing 28.57 percent its total outstanding capital.

Net proceeds from the offering, amounting to P6.8 million, will be used for additional working capital in anticipation of higher business volumes and transactions (P3.66 million), hardware and software upgrades of its interactive website (P1.02 million), and the balance for increased marketing and promotional activities.

Abacus Capital & Investment Corp. was tapped as lead underwriter for the issue. Ten percent of the entire IPO shall be offered to local small investors as received by the Securities and Exchange Commission.

Cashrounds is registered with the Board of Investments as a new information technology service firm. With its IPO, it will become only the second issue to be listed at the stock exchange this year after its affiliate Makati Finance Corp.