MANILA, Philippines – Pointwest Technologies Corp., a soon-to-be-listed technology company, is seeking to expand its business through the addition of delivery centers, expansion of US sales operations, development of digital production and acquisition of applications and other technologies.
In a submission to the Securities and Exchange Commission (SEC), Pointwest said it hopes to raise P1.098 billion from its planned initial public offering (IPO) to fund its expansion plans.
Of the total amount, Pointwest is allocating P317.7 million for the development of its digital products; P294.430 million for expansion of its delivery centers; P224.3 million for acquisition of applications and proprietary technologies; P201.57 million for working capital and general corporate purposes and P60.755 million for expansion of its US sales operations.
The timetable for the expansion projects is from October 2016 to January 2018.
The opening of additional delivery centers within the Philippines is meant to cater to the growing demands of its operations. The expenses for the expansion include, build out cost, cost of service, rentals and utilities, personal costs and professional services, according to data from the company.
Furthermore, the company also intends to use the estimated amount to fund the expansion of its US sales operations.
As of November, the company has not entered into any definitive agreement with any party and the expansion of sales operations in the US is still at a preliminary stage.
Pointwest also intends to use the proceeds of its IPO to fund the development of commercially viable and high margin digital products through Pointwest Labs, and to commercialize the existing applications it developed.
However, it said plans to acquire applications and proprietary technologies are still at a preliminary stage and there are no specific plans nor any definitive agreements entered into with any party.
“The net proceeds are intended to be infused as both equity and debt into expansion of delivery centers and development of products of Pointwest Innovations Corp. and expansion of sales operations in PTC US. Both are wholly owned subsidiaries and will eventually be remitting dividends to the Company,” the company said.
Pointwest is selling 417 million common shares at P4.35 per share. The shares will comprise of 278 million new common shares to be issued and 139 million existing common shares offered by the selling shareholders. In all, the company hopes to raise P1.2 billion, with net proceeds of roughly P1.10 billion from the sale of 278 million primary offer shares.
It was supposed to list this month but moved its listing instead to next year due to tight schedule and amid the prevailing market volatility.