E-Games eyes P373.5M from follow-on offer

MANILA, Philippines - IP E-Game Ventures Inc., the online gaming unit of IP Ventures, is seeking to raise up to P373.52 million through a follow-on offering of shares.

Based on its prospectus filed with the Securities and Exchange Commission, E-Games said it is selling up to 1.334 billion primary and secondary shares at a maximum of P0.28 each.

Of the total, as much as 933.8 million shares will be issued by E-Games while up to 400.2 million shares will be sold by main shareholder IP Ventures.

The equity transaction is aimed at complying with the bourse’s minimum public float requirement of at least 10 percent.

Maybank ATR Kim Capital Partners Inc. will serve as the lead underwriter for the offering.

E-Games said it intends to use proceeds from the sale share to finance the expansion of its Internet café retail outlets (P100 million), the acquisition of new content for its online games publishing business (P50 million), strategic acquisitions (P50 million), and working capital (P20 million).

E-Games is one of the leading online games publishers in the country, garnering a community of over 15.9 million registered gamers and 3.5 million active users per month.

As part of its strategy to be the leading digital consumer platform in the Philippines, E-Games acquired two of the largest Internet cafe chains - Digital Paradise Inc. which owns and operates Netopia, and Webworx Inc.

From a current network of 123 Internet cafes, E-Games plans to expand to 1,000 outlets within the next two years by building out company-owned outlets, acquiring existing Internet cafes and franchising.

Estimated capital expenditures per Internet café outlet can range between P1.1 million and P1.5 million depending on number of seats, location, target market, and other factors.