Xeleb to use IPO proceeds to expand in SE Asia

MANILA, Philippines – Xeleb Technologies Inc. (XLB), the celebrity mobile games company of Xurpas Inc., will use bulk of the proceeds from its planned initial public offering (IPO) this year to expand in Southeast Asia, its top official said.

In an interview with The STAR, Xeleb chairman, president and CEO Raymond Racaza said the plan is to expand in Indonesia and Thailand within 18 to 24 months after the IPO.

“The first market we plan to penetrate is Indonesia and tap celebrities there. So it will be Indonesia and then Thailand because it mimics the Philippines in terms of social media. We can do it through a local partner. The plan is to do it in the next 18 to 24 months but definitely, it would be sooner,” Racaza said.

Xeleb is engaged in the creation and development of digital products and services, with a particular focus on celebrity-branded and themed mobile casual games and content for consumers.

Racaza said the company’s potential for growth is strong given the region’s growing usage of mobile phones and consumption of social media.

“Demand for celebrity is insatiable,” he said.

In a separate interview, one of the company’s owners, television personality Erwan Heussaff said investing in Xeleb is banking on the future.

“If you invest in a market like Xeleb, you’re investing in what is current now and what is the future. Everyone’s life is in their smart phone. We’re the only company that’s offering that. We’re taking over the Smartphones. And we have the widest reach in terms of population,” Heussaff said.

Xeleb plans to list on Dec. 12, the second anniversary of the blockbuster IPO of parent company Xurpas. The offer period will run from Nov. 28 to Dec. 5.

It plans to raise up to P736 million through an offering of up to 290 million common shares at an offer price range of P2.04 to P2.54 per share.

In its prospectus filed with the Securities and Exchange Commission (SEC), Xeleb said it plans to set aside 58.1 percent or roughly P388.04 million of the net proceeds of P667.51 million for regional expansion; 27.2 percent or P181.5 million for product development and 14.7 percent or P98 million for general corporate purposes.

“The IPO shares will represent 19.68 percent of the company’s total outstanding capital stock and will be applying to the list on the Small, Medium, and Emerging (SME) Board of the Philippine Stock Exchange (PSE),” Xeleb also said.