SEC approves IPO of Ripple E-Business

MANILA, Philippines – The Securities and Exchange Commission (SEC) has approved the planned initial public offering (IPO) of Filipino software development firm Ripple E-Business International Inc. which hopes to raise net proceeds of P17.76 million.

In its registration statement, Ripple E-Business said it would offer 4.579 million new common shares at P4.37 each. The offer shares represent 29.41 percent of the company’s outstanding common shares after the IPO.

Asian Alliance Investment Corp. has been tapped as lead underwriter for the offering.

Incorporated in January 2002, Ripple E-Business has developed, marketed and successfully deployed a retail sales and inventory software solution or a merchandise management system, Barter MMS to a growing number of retail and distribution company businesses in the Philippines.

Barter MMS is capable of consolidating information that allows the business to monitor store-level activity over its distributed operations. 

Ripple E-Business also provides project management, training, implementation services and follow-on support agreements. It resells point-of-sale systems and related peripherals.

Proceeds from the offering will be invested for the further enhancement of Barter MMS as well as the development of related software products that will expand the company’s market coverage into other segments of the retail and distribution industry.

The company is allotting P9 million out of the total proceeds for research and development cost of the next generation of Barter MMS and the development of product extensions such as Barter solutions for the pharmaceutical industry and for warehouse and distribution operations. It plans to hire at least 10 programmers and consultants within 12 months from listing.

Another P7.5 million has been earmarked for marketing expenses while the balance of P1.21 million will be used to fund working capital.

Last year, Ripple E-Business posted a net profit of P1.64 million, 53.3 percent higher than the P1.07 million reported in 2007. Revenues rose 29.3 percent to P30.74 million.