E-Games secures approval for PSE listing

 

 

Makati City, February 1, 2010 – Leading online gaming publisher IP E-Game Ventures Inc. (IP E-Games), a subsidiary of publicly listed technology firm IPVG Corp. (PSE: IP), has secured approval from the Philippine Stock Exchange (PSE) for the initial listing by way of introduction of 33,545,554 common shares, under the Second Board of the Exchange, at an indicative reference opening price of P50.00 per share.

 

IP E-Games Chief Executive Officer Enrique Y. Gonzalez says: "We are thrilled with the approval of the listing of our Company. We will be the first publicly listed online games publisher in the country and this marks a new phase in the growth of our organization.”

 

“With our access to the capital markets, we are well positioned to further grow the Company by continuously investing in our content pipeline and publishing infrastructure. We hope to attract our gaming community to participate in the stock market," Gonzalez adds.

 

"Due to the dynamism of the online games industry, we believe our company will be an extremely exciting share issue for the investing public to watch and track," says Gonzalez.

 

Listing by way of introduction involves the listing and trading of a company’s shares at the stock market without going through an initial public offering (IPO). However, the Philippine Stock Exchange requires companies who list in compliance with the legal requirement to conduct a public offering and comply with the minimum public ownership requirement within one year from listing.

 

IP E-Games, by virtue of being a firm registered with the Board of Investments, and being certified by the Bureau of Internal Revenue as not being a closely held corporation, qualifies to list its shares by way of introduction.

 

The leading online game publisher in the Philippines

 

IP E-Game Ventures Inc., was incorporated on November 22, 2005 primarily to engage in the business of interactive gaming and content distribution. It is the online gaming subsidiary of IPVG Corp.

 

 The company is one of the leading online game publishers in the Philippines.  It offers a portfolio of online games including massively multiplayer online role-playing games or MMORPGs, and casual online games. The company pioneered the free-to-play business model, wherein gamers are not required to pay a subscription fee to play online games.  Gamers are given the option of purchasing “in-game items” to enhance their gaming experience.  The

company sells its virtual currency (e-Points) that is used to purchase these in-game items.

 

Since commencing operations in 2006, IP E-Games has commercially launched six MMORPGs and three casual games in the Philippine market.  It has 28 main distributors through which it covers the entire country, with a network spanning approximately 20,000 outlets such as internet cafés, independent kiosks, mini-marts, and computer shops.   As of the end of 2009, IP E-Games has over 11 million registered gamers all over the Philippines. 

 

MMORPGs allow a large number of players to interact with one another over the internet in a virtual world.  Entire communities of gamers form around these games.  The company’s MMORPG portfolio includes CABAL Online, a futuristic fantasy game, and RAN Online, a modern campus-themed game, and the popular beat mania game, Audition Dance Battle.

 

In a “Top-Of-Mind” survey conducted by the Asian Institute of Journalism and Communication in November 2009, from a market of over 40 games, Audition, RAN Online and CABAL Online were the top three games garnering over 41% of the responses. All three titles are from the portfolio of IP E-Game Ventures Inc.

 

In October 2009, X-Play Online Games, Inc. (“X-Play”), The company’s 50/50 joint venture with GNMI, launched Operation7, a casual online first person shooter game. In January 2010, the company launched Runes of Magic, a quest-based MMORPG. X-Play plans to launch two new casual games, Super Star Online and BandMaster, within the first quarter of 2010. 

 

 $10 M deal with GEM Investment Group

 

On September 2009, IP E-Games secured a P500M deal with GEM Global Yield Fund Limited (GEM), with E-Games granting shares to GEM for up to an aggregate value of Five Hundred Million Pesos (Php 500,000,000.00), provided the average market price of the shares at the time of draw down is greater than or equal to 50 pesos per share.

 

The agreement provides that IP E-Games shall issue to GEM or to GEM’s order, one or more warrants to subscribe for up to P50 million worth of shares.

 

The funding will be used for E-Games’ future business activities and engagements.

 

The GEM Group (Global Emerging Markets) is a US$ 2.7 billion alternative investment firm engaged in the management of a diverse set of investment tools centered on emerging markets all over the world. It is a UK-based fund management group with offices in London, New York, Paris and Hong Kong. The scope of GEM Group’s activities and investment is both US domestic and international, across a broad spectrum of industries and transactional structures. The Group has completed more than 230 transactions representing investment in over 200 companies in 45 countries across the world. GEM Group’s notable past investments include:

 

·       $150 million equity line extended to Spyker Cars N.V.  as a back-up to complete the acquisition of Saab Automobile AB.

·       Php. 300 million equity line of Credit to PSE Listed company IPVG Corp.

·       Apollo Hospitals Group - Listed on the Mumbai Stock exchange, the company today represents the single largest integrated private sector healthcare company in Asia.

·       Hyundai Securities (U.S.A.) Inc. - The largest securities firm in Korea; operates the financial services arm of the Hyundai Group

·       Cybertron Telekom AG – An Austrian company that provides telephone, data, and Internet access services to businesses and individuals through its own fiber, copper, and broadband wireless communications lines.

·       Php. 2 billion equity line of credit to PSE-listed mining firm Century Peak Metals Holdings Corp. (CPMHC)

 

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About IP E-Game Ventures Inc.

 

IP E-Games operates the online gaming business unit of IPVG Corp. IP E-Games is ranked as the leading online games publisher in the Philippines and holds the top titles in the Philippines, including RAN Online, Cabal Online, Audition Dance Battle, and Presidential Award recipient Korean game Granado Espada. Other games include Chinese MMORPG ZX Online and Korean title Nostale Online. The casual games of IP E-Games are published under X-Play Online Games Inc. (X-Play), a joint venture company between IP E-Games and GMA New Media Inc. (GMA NMI), the digital arm of GMA Network Inc. (GMA7). IP E-GAMES strategic minority investors include the Philippine Star Group and E-Store Exchange (an affiliate of GMA7). For more information, visit www.e-games.com.ph

 

Editorial Contacts

 

Erica G. Cortez

Marketing Services and Corporate Communications Specialist

Tel No.: 63 (2) 976-4784

Email: erica.cortez@ipvg.com