Publicly-listed information technology and gaming conglomerate IPVG Corp. is planning to raise as much as P150 million from a private placement of shares to fund the expansion of its subsidiaries.
In a disclosure to the Philippine Stock Exchange, IPVG said its board has approved the issuance of up to 50 million shares out of the proposed increase in its authorized capital stock from P800 million to P1 billion. The shares will be sold at P3 per share.
IPVG said the terms and conditions of the private placement have yet to be finalized by the firm’s executive committee.
Aside from the private placement, IPVG also plans to issue up to 38 million shares to its employees and/or subsidiaries or to a company formed by such employees at P3 each.
IPVG is subscribing to 100 million shares and 90 million shares of IP Contact Center Outsourcing Inc. and IP Coverage Data Center, respectively at P1 per share.
It is also investing $2 million in gaming unit IP E-Game Ventures Inc.
From January to March this year, IPVG reported a five-fold increase in net income to P33.91 million on
the back of record-breaking revenues.
Consolidated revenues surged 430 percent to P827.69 million from only P156.17 million a year earlier on robust contributions from the firm’s online gaming and communications units and newly-acquired businesses.
While focused on high-growth technology driven sectors, IPVG generates revenues from the US, Europe and Southeast Asia thereby offering regional and global exposure. This has translated to a sustained growth in the company’s earnings with minimal risk.
Aside from IT and business process outsourcing, IPVG also has interests in telecommunications and online gaming. It has established presence in the Philippines, Singapore, Hong Kong, Vietnam, India, Panama, United Kingdom and the US.