PHILIPPINES--Philippine technology company IP Ventures Group (IPVG) is aiming to raise some 500 million pesos (US$10.9 million) which the tech company will use to finance its domestic and foreign expansion plans.
Currently listed on the Philippine Stock Exchange, IPVG will be releasing up to 100 million shares as a follow-on-offering. A follow-on-offering refers to a move to put up for sale additional shares, usually with the objective of raising funds, after a company's initial public offering (IPO).
The company revealed its expansion plans last week when it disclosed its quarterly revenue projections. IPVG provides a range of technology-related services that include business process outsourcing, Internet data center facilities and online games.
In an e-mail interview, Roger Stone, deputy chairman of IPVG, said the company "intends to raise about 500 million pesos" to support its expansion plans, though he noted that the timing and pricing of shares offered in this round have "yet to be decided". Some local news sources, however, have put the timeline to be September this year.
Stone said the company is looking to grow across all its business lines. "We see clear growth in our data center and telecommunications business, in fact, we are expanding capacity significantly over the next six months," he said, referring to IP-Converge Data Center (IP-Converge), a wholly-owned subsidiary under IPVG.
He added that the company's online games business IP e-Games, continues to "grow wider geographically with the addition of new games, notably Granado Espada".
IPVG currently has a partnership with Infocomm Asia Holdings, a technology company backed by the Singapore government, where both companies signed a deal in March to address the premium games market in the Philippines.
Stone also mentioned that IPVG plans to set up more call center facilities, which will be managed by IPCCO, the company's outsourcing arm.
For its foreign expansion plans, Stone said the company is looking at forming new business ventures outside the Philippines. However, details such as location and the type of business IPVG will roll out were kept under wraps.
Stone hinted that IPVG will continue to focus on IP-related services. "We cannot disclose [the type of businesses] yet, but the services we will offer in the future will still be in line with our current businesses. We will stay true to our business direction of the creative use of IP," he said.
Meanwhile, in a statement released last week, the company said it expected revenues for the second quarter of 2007 to reach 175 million pesos (US$3.8 million), an increase of 169.2 percent over 65 million pesos (US$1.4 million) in the same period last year.
IPVG further said the expected revenue growth will mark the second successive quarter of positive income for the company, and may also result in income that could increase four to five times over the previous quarter. In addition, if the revenue projection comes through, it will also be "a reversal from last year's negative earnings", the company said.
In a separate announcement this week, IPVG unveiled plans to acquire a 260-seat contact center Globalstride, in a deal that includes the transfer of fixed assets, materials contracts and existing customer accounts.
Joel D. Pinaroc is a freelance IT writer based in the Philippines.
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