Philippines: DFNN, Excel Century ink $12.4m private placement deal

Visual from company website.

Philippine IT company DFNN Inc has raised up to $12.4 million (P624.4 million) in a private placement deal with UK-based Excel Century Investment Ltd.

Excel Century, a holding and investment company based in the British Virgin Islands, subscribed to over 74.8 million unissued shares of DFNN priced at P8.30 per share.

DFNN informed the local bourse it aims to use the raised capital to provide funds for general corporate purposes and funding requirements in relation to its business plans. Among these are infrastructure expenses, and expansion of gaming systems and other platforms such as unified e-wallet subsystem, and security system for IT Platforms, among others.

Also Read: Philippines: Ayala’s IMI acquires 80% stake in UK-based electronics firm STI

Founded in 1999, DFNN is a listed IT solutions provider and systems integrator in the Philippines. The company is now also an active provider of gaming technology solutions in the country.

“While this subscription will dilute their percentage of ownership, the principal shareholders will welcome the entry of the subscriber who will infuse additional capital for the company’s business expansion plans,” DFNN said in its statement. “This subscription signifies that the company is a viable investment which will increase the value of their respective interests in the company.”

Tagged as an isolated transaction, the private placement deal qualified as an exempt transaction from the registration of securities with the Securities and Exchange Commission.

DFNN listed its work program of the application of proceeds, such as the build out and fit out of DFNN Technology Center and Studios (P150 million), Technology and Infrastructure Solutions (P120 million), gaming consultancy services (P90 million), marketing and promotions (P80 million), strategic investments P80 million, working capital P50 million, retirement of debts (P36.484 million), and fit out of DFNN Group new offices (P15 million).

DFNN posted a 672 per cent increase in net income for the first quarter of 2017. It had consolidated revenue of P266.32 million, up 359 per cent from the same period a year ago.

The company attributed the improvement to the expansion of its gaming footprint and increased adoption of its technology platform.

“We are very pleased with our first quarter groupwide results. We aim to sustain this trajectory through the next quarter as we launch our Sports Betting Exchange Gaming Platform,” said DFNN chief executive officer Ramon Garcia.

DFNN last traded at P8.88 per share on Friday (May 19).

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.