DFNN unit plans private placement

Business process outsourcing firm Intelligent Wave Philippines Inc., a subsidiary of Diversified Financial Network Inc., is planning to undertake a private placement of shares prior to going public next year.

Ramon Garcia Jr., chairman of DFNN, said the company is taking in a strategic partner, the identity of which has been kept under wraps pending completion of negotiations.

Garcia said the prevailing weak market conditions have prevented IWI to go public but pointed out that the plan is still there.

“We still intend to push through with the IPO. Volatility should be done by next year,” Garcia said.

Garcia said IWI’s offering will involve 25 to 30 percent of the company’s outstanding shares and will be handled by BDO Capital & Investment Corp.

In preparation for the IPO, IWI’s board earlier approved a resolution to increase its authorized capital stock from P22 million to P100 million.

IWPI is currently engaged in the business of providing IT business solutions for local and Japanese banks, as well as other financial institutions on an outsourced basis.

Proceeds from the IPO will be used to expand IWPI’s services and tap the opportunities that will open in Japan following the Philippine-Japan Free Trade Agreement.

Garcia said Pacific Gaming Investments Pte. Ltd., a unit of DFNN that is based in Singapore, is aiming to raise $2 million through a listing of its shares on the Hong Kong bourse.

Garcia estimates Pacific Gaming’s capitalization at $200 million to $400 million following the IPO. The final terms of the offer have yet to be finalized although proceeds of which will be used for working capital and mainly for future acquisitions and investments in the booming Asian gaming industry.

Pacific Gaming is engaged in both online and traditional gaming operations in South East Asia. It had  purchased  Poseidon Co. Ltd., a Cambodian slot machine operator, for $4.2 million.