IPVG unit seeks listing by way of introduction

MANILA, Philippines - IP E-Game Ventures Inc., the online gaming subsidiary of listed technology conglomerate IPVG Corp. is seeking to list its shares by way of introduction on the Philippine Stock Exchange.

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).

Based on its registration statement, IP E-Game will list up to 33.54 million common shares. It is doubling its authorized capital stock to P100 million, divided into 100 million shares with a par value of P1 each share.

The company has tapped ATR KimEng Capital Partners Inc. as financial adviser for the listing of the shares.

IP E-Game was organized on November 2005 mainly to engage in the business of interactive gaming and content distribution. It is currently one of the leading online game publishers in the country, pioneering the free-to-play business model wherein gamers are not required to pay a subscription fee to play online games.

Since it started operations in 2006, IP E-Game has launched five massively multiplayer online role-playing games or MMORPGs and four casual games in the Philippine market. The company has 28 main distributors with a network spanning approximately 20,000 outlets such as Internet cafes, independent kiosks, mini-carts and computer shops. As of June 30, 2009, IP E-Game has 10 million registered gamers all over the country.

MMORPGs allow a large number of players to interact with one another over the Internet in a virtual world. The company’s MMORPG portfolio includes leading Cabal Online, a futuristic fantasy game, RAN Online, a modern campus-themed game; and ZZX Online, a Chinese war game.

IP E-Game plans to release Runes of Magic, a quest-based MMORPG, at the end of 2009.

In comparison to MMORPGs, casual online games are easier to play and are targeted at a mass audience. The company offers Audition, which was the most popular casual game in the world as of June 2009 according to Redbana US Corp.; O2 Jam, the leading online music game in the country; FIFA Online 2, a casual online football game; and Operation 7, a first person shooter game.

IP E-Game has a 50-50 joint venture with GMA New Media to exclusively publish casual games in the Philippines.

Two companies – AgriNurture Inc. and Century Peak Metals Holdings Corp. have listed by way of introduction at the PSE this year.

Aside from IPVG, two other companies are planning to list by way of introduction. These are local search engine Yehey!.com and Integrated Micro-Electronics Inc. (IMI), the electronics manufacturing unit of the Ayala Group.