Malaysia’s Flexiroam heads to ASX, aiming for A$12mil IPO
By Digital News Asia April 21, 2015
- Budget roaming service provider to offer new products, expand APAC presence
- For 9mth period ended Dec 31, hit revenue of A$3mil and net profit of A$200K
KUALA LUMPUR-based company Flexiroam Ltd said it is seeking to raise up to A$12 million (US$9.4 million) through an initial public offering (IPO) on the Australian Securities Exchange (ASX).
The Asia Pacific budget international roaming service provider recently opened its prospectus offer document after it was reviewed by the Australian Securities and Investment Commission.
In a statement, Flexiroam said it is looking to issue 60 million shares to the general public at 20 Australian cents each (maximum subscription), with a minimum subscription of A$8 million (US$6.2 million).
At maximum subscription, Flexiroam is expected to have an estimated market capitalisation of A$40.38 million (US$31.46 million).
For the nine-month period ended Dec 31 2014, Flexiroam Ltd recorded revenue of approximately A$3 million (US$2.3 million) and a net profit of approximately A$200,000 (US$155,820).
Flexiroam is the parent company of Flexiroam Sdn Bhd, which offers international roaming services for outbound travellers from eight different countries to destinations in over 200 countries and territories around the world.
“This marks a new beginning for Flexiroam and I am excited to share this journey with you as we take the company to the next level,” said founder and chief executive officer Jef Ong Kenn Tat.
Flexiroam was established in 2011 with a mission to bring affordable roaming solutions to travellers globally. Over the years, it has developed a range of products such as digital roaming passes and global SIM cards.
“Since its inception, Flexiroam has saved travellers millions of dollars in roaming charges and has grown its subscriber base to over 300,000,” said Ong (pic).
“Through this IPO, we hope to provide further innovations in telecommunication technologies to make the roaming experience more convenient and user-friendly. Our goal is to expand the Flexiroam brand in South-East Asia and introduce it to the rest of the Asia Pacific region,” he added.
Flexiroam’s core products currently include the Flexiroam Roaming Pass and the Flexiroam SIM cards, which allow outbound travellers to enjoy international roaming services at pre-determined fixed fees that are significantly lower compared with regular international roaming charges.
Its products and services are supported by the Flexiroam Tracking System (FTS), a cloud-based tracking system that allows global access to its products, the company said.
Based on the level of subscription achieved, the company intends to use the proceeds raised from the IPO to further develop and market its existing products; fund the research, development, and marketing of new products; and implement international expansion plans.
“Our expansion plans are to initially gain access to further markets by developing a large local subscriber base through online means,” said Ong.
“We will then work with local travel industry partners that will act as distribution channels. Once these are established, we will create new applications and products,” he added.
Flexiroam services are currently offered to outbound travellers from eight countries – Malaysia, Singapore, Indonesia, Australia, Canada, Hong Kong, the United Kingdom and the United States.
Upon the successful completion of the IPO, Flexiroam intends to expand its business in Singapore, Thailand, and Indonesia; and expand its operations into China, Hong Kong, and India if the IPO achieves full subscription.
Patersons Securities Limited is the lead manager of the IPO, while Trident Capital is the corporate adviser. For further details, please refer to the Limited Replacement Prospectus on Flexiroam’s website at http://investor.flexiroam.com.
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