Xurpas shares jump 50% in market debut

MANILA, Philippines - Mobile content provider Xurpas Inc. is now looking to push through with its planned regional expansion and acquisition after a fiery market debut yesterday.

Xurpas’ stock price opened and closed 50 percent higher at P5.95 per share from its initial public offering (IPO) price of P3.97 apiece.

“Today’s listing is not just an achievement for Xurpas, but also a milestone for the local consumer technology industry and technoprenuers who want to compete in the regional and global markets,” said Xurpas president and chief executive officer Nico Jose Nolledo.

The company said the share sale generated strong interest as it ended 6.5 times oversubscribed at the last count during the close of the offer period.

“The last two weeks we’ve noticed the clamor for the shares has been growing but I can’t quite determine what the turning point was. I guess being the only fish in the pond creates some scarcity,” Nolledo said.

“When we were first started talking to investors, we knew that it is important for us to get our names and our company recognized by the market and by the investing public. That’s why every opportunity we had to present our business, we took,” he added.

Xurpas raised P1.36 billion from the IPO, selling 344 million common shares at P3.97 per share.

The firm intends to use bulk of the proceeds for regional expansion and acquisitions.

At present, Nolledo said the company is in talks with “a little over 10” foreign firms for potential partnerships and eventual acquisitions.

“We’ve had several conversations with foreign businesses that you would say want to have potential synergies with us, but the nature of the conversations have been less on possible acquisition and more on potential partnership,” he said.

The company is looking to expand its markets in Southeast Asia, primarily in Indonesia, Bangladesh, and Thailand.

Nolledo, however, said Xurpas is open to venturing into the more mature mobile content market outside Southeast Asia in the coming years.

“Who would not ambition to reach four billion costumers,” Nolledo said.

“Our competitive edge in mobile content development and the Southeast Asian market potential of 689 million mobile subscribers all point to the right timing to take hold of opportunities in the region,” he added.