Asiasoft IPO Review

Asiasoft Corporation in Thailand is planning to come out with its IPO or Initial Public offering. It is in the business of providing online entertainment.


What is the size of Asiasoft IPO?
A total of 75 million shares will be offered for sale through the IPO.

What is the subscription date for Asiasoft IPO?
The Asiasoft IPO will open for subscription from May 20 to May 22. The listing will be on The Stock exchange of Thailand.

Where will the Asiasoft IPO proceeds be used?
According the BangkokPost, Funds raised from the IPO are supposed to be used to expand its online game business, particularly in Malaysia and Vietnam, and to procure more online game licences.
Some portion will also be used to improve the IT infrastructure and add to the workling capital of the Asiasoft company.
Also, in the next two years, the Asiasoft plans to expand its business to Indonesia and the Philippines by offering twelve online games services in four countries, comprising of Thailand, Singapore, Malaysia and Vietnam.

What are the financial results and business valuations of Asiasoft IPO?
Asiasoft reported net profits of 254 million baht on revenues of 1.55 billion, up from profits of 128 million on revenues of 1.05 billion the previous year. Overseas revenues are expected to rise to 55% of total sales from 46% last year.

What are the risks or drawbacks for investment in Asiasoft IPO?
The biggest risk is of competition. Though in the local market, it may be a leader. However, it has to compete fiercely on global front, where the IPO proceeds be used.

Where does the Asiasoft business stand right now?
As of now, the Asiasoft's business covers five categories: online games, computers and online game distribution, an online game pre-paid card distributor, a game portal, online advertisement and online games development.
It operates five companies in Southeast Asia including Asiasoft Online Pte, an online game provider in Singapore and Malaysia; Asiasoft International, an investment company; Playpal, a PC and online game developer; Playpark, providing game portal services, banner advertising at playpark.com; and Asiasoft Online Sdn, which supports Asiasoft Online Pte for game providers and prepaid card distribution in Malaysia.
The company has a 59.6% share in Thailand's online game market; 69.8% in Singapore, 21.2% in Malaysia and 15.8% in Vietnam.

Any new business plans for the company? Remaining in its own domain the Asiasoft company planned to launch three or four online games this year after launching two games in 2007.

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