RP-based software firm Gurango eyes P300M from IPO in 1st qtr

Gurango Software Corp. (GSC), a Philippine-based multinational software company with around 400 clients worldwide, has joined the growing list of companies planning to tap the equities market with its planned P300 million initial public offering (IPO) in the first quarter of 2008.

GSC chief executive officer Joey Gurango said the IPO would accelerate the company’s expansion in major markets which include the United States, European Union and the Middle East.

Gurango said GSC, which develops and distributes products for the Microsoft Dynamics ecosystem,  has yet to finalize the size of the offering.  BPI Capital Corp. has been tapped as the lead underwriter for the offering.

He said proceeds from the offering would be sufficient to cover the firm’s capital expenditures over the next two years. These which include continued research and development of proprietary software solutions as well as strategic acquisitions.

Gurango said the company is looking at a dozen foreign companies for possible acquisitions but said the group is keen on acquiring intellectual property (IP) assets that complement its product portfolio and those whose distribution channels have an international customer base.

The firm’s goal is to be a leading global provider of software products and services by 2011.

Incorporated in 2003, GSC develops its own IPO assets in the form of software solutions for specific vertical or niche markets. It partners with independent software vendors to distribute third-party solutions in the countries where it operates.

GSC’s acquisition of Absalom Systems, a software developer specializing in HR solutions with operations in Singapore, Australia and South Africa, increased its client base by 400 percent and is expected to shore up its bottom line to $200,000 on revenues of $2 million by the end of the year.

In preparation for the maiden offering of its shares to the public, GSC will raise its capitalization from P14.9 million to P800 million.

“We are positive that the market is ready to see a Filipino high-technology company succeed in the global market… especially one in a highly profitable industry like software,” Gurango said.