Xurpas IPO 4x oversubscribed

The 1.37 billion initial public offering of Technology firm Xurpas Inc. is over four times oversubscribed even before its offering period which is slated for November 17 to 25, 2014.

In an interview after the firm’s investors’ briefing, issue underwriter SB Capital Investment Cororation’s director Martin Villalon said the oversubscription could be higher since this is just based on initial orders for Xurpas shares.

The company intends to use the net proceeds from the IPO to finance its expansion and acquisition plans, domestic and evolving markets within the South East Asia region.

Xurpas said it intends to expand to existing points of distribution such as Indonesia, at a cost of 392.73 million; Bangladesh, for 117.72 million; and Thailand for 157.09 million. It will also spend 250 million for the development and expansion of existing content while setting aside 261.83 million for general corporate purposes.

Xurpas President Nix Nolledo said they intend to grow the firm’s mobile consumer content and services business by establishing operations within the South East Asia region to expand its sales of mobile consumer content to a broader range of customers, including Telcos within the region.

He noted that the region “represents a mobile subscriber population of over one billion, excluding the Philippines. These markets present conditions similar to the Philippine mobile market, as these markets feature rising internet and smartphone penetration and its mobile subscriber populations are predominantly under prepaid arrangements.”

The firm also intends to implement strategic acquisitions of existing mobile consumer content, enterprise and applications developers and proprietary technologies.