Xeleb Technologies, the mobile gaming unit of technology firm Xurpas Inc., plans to raise as much as P736.6 million from a stock market debut.
The company filed its registration statements with the Securities and Exchange Commission (SEC) to offer up to 290 million common shares at an offer price range between P2.04 and P2.54 per share.
Based on the registration statement, Xeleb can raise at least P591.6 million to as much as P736.6 million from this capital-raising activity, which will bring to public hands 19.68 percent of the company’s total outstanding capital stock.
Xeleb seeks to list on the small, medium and emerging (SME) board of the Philippine Stock Exchange (PSE) under the ticker “XELEB,” based on the prospectus.
The company plans to use the net proceeds for ongoing product development, regional expansion to Southeast Asia, and for general corporate purposes. Like its parent company Xurpas’ (PSE) 2014 IPO, XELEB has tapped SB Capital Investment Corp. as its sole issue manager, underwriter and bookrunner for its IPO.
The company was originally founded in 2001 as Fluxion Inc., primarily focused on providing wireless technologies, software/hardware tools design, and knowledge-based services to corporate clients. In 2005, Xurpas Inc. purchased 65 percent of the company. One year after its listing on the PSE in December 2014, Xurpas incorporated Xeleb Inc., as a subsidiary focused on the creation and development of celebrity-themed mobile casual games. In 2016, Fluxion and Xeleb underwent a restructuring in order to consolidate the development resources required for ongoing product development under Xeleb. This resulted in Fluxion owning 67 percent of Xeleb, and Xurpas Inc. purchasing the remaining 35 percent stake of Fluxion, thereafter renaming it to Xeleb Technologies, Inc.
Xeleb rides on two very successful megatrends: the rise of celebrities as a media force and the boom in casual gaming globally. It is the country’s first and largest celebrity-branded and themed casual games company. Its portfolio includes the country’s biggest stars: Anne Curtis-Smith, Alejandro “Kuya Kim” Atienza, Isabelle Daza, Erwan Jean Heussaff, and Sarah Geronimo. Combined, they command a social media audience of close to 50 million fans. Xeleb’s product offerings are among the fastest-growing mobile consumer products of the Xurpas group of companies.