Outsourcing firm to fund acquisition via share sale

MANILA, Philippines - BayanTrade, Inc., which specializes in knowledge process outsourcing (KPO), is eyeing more acquisitions in Asia and the US which is seen to be funded by a proposed share sale. BayanTrade is a company borne out of the partnership among the country’s six largest business conglomerates—Aboitiz & Company, Inc., Ayala Corporation, Benpres Holdings Corporation, JG Summit Holdings, Inc., Philippine Long Distance Telephone Company (PLDT), and United Laboratories, Inc. Initially focused on e-procurement, the company is now a KPO entity, specializing in supply chain management. On its eighth year, the company reported a 40% compounded annual growth rate over the last five years. A company statement said the company did well last year, its 3rd consecutive year of profitability. The company attributed the gains to major acquisitions made last year and industry alliances. Last year, BayanTrade acquired CITP Pte. Ltd. in Singapore and its subsidiary Columbus IT Indonesia, which are technology consulting and software development companies in the region. The company said these acquisitions boosted the company’s standing as a regional player. Earlier, BayanTrade President and CEO Dante Briones said that the company is eyeing other acquisitions in the Asian region. “The BayanTrade Group of Companies is well on its way to its direction in becoming a legitimate international business organization with a formidable global business focus," said Briones in a statement. Besides CITP Singapore and Indonesia, the BayanTrade Group also includes ABM Computech Enterprises Inc., a local software consulting firm, which was acquired in August 2007. Briones said that the ABM Computech acquisition has positioned the company in the mid-market segment. BayanTrade reportedly plans to sell a total of 29 million common shares at a minimum price of P4.21 each to reach at least P122.09 million fresh funds. The company has tapped BPI Capital Corp. as lead underwriter and issue manager for the initial public offering (IPO). The IPO proceeds will also fund regional operations. - Veronica C. Silva, GMANews.TV