PDF version - flexiroam limited (asx:frx)

THIS ANNOUNCEMENT IS ONLY BEING DISTRIBUTED OUTSIDE OF THE UNITED
STATES AND MAY NOT BE DISTRIBUTED, FORWARDED OR OTHERWISE USED
IN THE UNITED STATES.
PRESS RELEASE
FOR IMMEDIATE RELEASE
Flexiroam to raise up to A$12million in IPO
Budget roaming service provider to offer new products and expand Asia-Pacific presence
KUALA LUMPUR, MALAYSIA, 20 APRIL 2015 – Flexiroam Limited (“Company”), a budget
international roaming service provider in the Asia-Pacific region, is seeking to raise up to A$12million
through an initial public offering (“IPO”) on the Australian Securities Exchange (“ASX”). The company
had recently opened its prospectus offer document after it was reviewed by the Australian Securities
and Investment Commission (“ASIC”).
The Company is looking to raise up to A$12million from its IPO through the issuance of 60 million shares
to the general public at 20cents each (maximum subscription), with a minimum subscription of A$8million.
At maximum subscription, Flexiroam is expected to have an estimated market capitalisation of
A$40.38million.
Flexiroam is the ultimate parent company of Flexiroam Sdn Bhd, a Malaysian-based wholly-owned
subsidiary. Flexiroam Sdn Bhd offers international roaming services for outbound travellers from eight
different countries to destinations in over 200 countries and territories around the world.
The Company’s founder and CEO Kenn Tat Ong (Jef) said: “We are excited to announce this
tremendous milestone in the life of Flexiroam which is the proposed listing on the ASX. This marks a
new beginning for Flexiroam and I am excited to share this journey with you as we take the company to
the next level.”
Flexiroam was established in 2011 with a mission to bring affordable roaming solutions to travellers
globally. Over the years, the company has developed a range of products such as digital roaming passes
and global SIM cards to deliver an extraordinary roaming experience for travellers. Its service coverage
extends beyond 200 countries with access to 580 telecommunications providers globally.
“Since its inception, Flexiroam has saved travellers millions of dollars in roaming charges and has grown
its subscriber base to over 300,000. Through this IPO, we hope to provide further innovations in
telecommunication technologies to make the roaming experience more convenient and user-friendly.
Our goal is to expand the Flexiroam brand in Southeast Asia and introduce it to the rest of the AsiaPacific region,” said Ong.
At present, Flexiroam’s core products include the Flexiroam Roaming Pass and the Flexiroam SIM cards,
which allow outbound travellers to enjoy international roaming services at pre-determined fixed fees that
are significantly lower compared with regular international roaming charges. Flexiroam’s products and
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THIS ANNOUCEMENT IS ONLY BEING DISTRIBUTED OUTSIDE OF THE UNITED
STATES AND MAY NOT BE DISTRIBUTED, FORWARDED OR OTHERWISE USED
IN THE UNITED STATES.
services are supported by the Flexiroam Tracking System (FTS), a cloud-based tracking system that
allows global access to its products.
Based on the level of subscription achieved, the company intends to utilise the proceeds raised from the
IPO to:- (i) further develop and market its existing products; (ii) fund the research, development, and
marketing of new products (i.e. Flexiroam Mobile App, Flexiroam Roaming Device and SIM Paste); and
(iii) implement Flexiroam’s international expansion plans.
“Our expansion plans are to initially gain access to further markets by developing a large local subscriber
base through online means. We will then work with local travel industry partners that will act as
distribution channels. Once these are established, we will create new applications and products to
delight and retain customers,” said Ong.
Flexiroam intends to utilise A$2million (or 17% of the total proceeds, assuming full subscription) from
the IPO proceeds to develop, market and distribute the Flexiroam Mobile App. The Flexiroam Mobile
App is a new product (beta trial expected to commence next month) that will allow travellers to make
calls from their smartphones using Wi-Fi or other Internet connection without requiring the receiver of
the call to have the App.
Another future product that Flexiroam intends to launch is the Flexiroam Roaming Device, which is a
4G-enabled portable Wi-Fi device that allows unlimited voice and data roaming. “We are also developing
the SIM Paste, which is a thin microchip-embedded film that converts the user’s phone into a dual SIM
phone when used overseas,” added Ong. Beta trials for the two products are expected in July and
October 2015, respectively.
Flexiroam services are currently offered to outbound travellers from eight countries – Malaysia,
Singapore, Indonesia, Australia, Canada, Hong Kong, the US, and the UK. Upon the successful
completion of the IPO, Flexiroam intends to expand its business in Singapore, Thailand, and Indonesia.
Flexiroam also plans to expand its operations into China, Hong Kong, and India, if the IPO achieves full
subscription.
“The telecommunications industry is a multi-billion dollar industry. In 2013 alone, there were
approximately 99 million international outbound travellers from Malaysia, Singapore, and Indonesia
alone,” said Ong. In 2011, the Asia-Pacific region makes up 34.3% of the world’s tourists with Southeast
Asia being the second largest source of outbound tourism in the region. This growth in international
travel has led to the growth of the international mobile roaming market. For the nine-month period ended
31 December 2014, Flexiroam Ltd recorded revenue of approximately A$3million and a net profit of
approximately A$0.2million.
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THIS ANNOUCEMENT IS ONLY BEING DISTRIBUTED OUTSIDE OF THE UNITED
STATES AND MAY NOT BE DISTRIBUTED, FORWARDED OR OTHERWISE USED
IN THE UNITED STATES.
On completion of the offer, 2.7 million advisor shares will also be offered to the Company’s corporate
advisor, Trident Capital; and three million advisor options with an exercise price of 20cents each and an
expiry date three years from issue.
Ong said: “We would like to thank our customers, suppliers, partners, and everyone who have been
instrumental in bringing us to where we are today. It has been a great pleasure serving and working
together, and we hope that you will continue to support us through this new and exciting phase.”
Patersons Securities Limited is the lead manager of the IPO, while Trident Capital is the corporate
adviser. For further details, please refer to the Limited Replacement Prospectus on Flexiroam’s website:
http://investor.flexiroam.com.
***
INDICATIVE TIMETABLE
Event
Date
Lodgement of the Prospectus with ASIC
15 April 2015
Opening Date for the Offer
15 April 2015
Closing Date for the Offer
19 May 2015
Dispatch of Statements of Shareholding
2 June 2015
Expected date for New Shares to commence trading on ASX
16 June 2015
DISCLAIMER
This announcement is only being distributed outside of the United States and may not be distributed, forwarded or otherwise used
in the United States. This announcement is not, and does not constitute, an offer to sell or the solicitation, invitation or
recommendation to purchase any securities and neither this announcement nor anything contained herein shall form the basis of
any contract or commitment. In particular, this announcement does not constitute an offer to sell, or a solicitation of an offer to buy,
any securities in the United States. Additionally, any securities to be offered and sold in the Offer have not been, and will not be,
registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or the law of any state of the United
States, and may not be offered, sold or resold, directly or indirectly, in the United States except pursuant to an exemption from, or
in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable securities laws.
ABOUT FLEXIROAM LIMITED
FLEXIROAM LIMITED is the parent company of Super Bonus Profit Sdn Bhd (a company incorporated in Malaysia), which in turn
holds 100% of the issued capital of Flexiroam Sdn Bhd (a company incorporated in Malaysia). Flexiroam Sdn Bhd is a Malaysianbased telecommunications business, offering budget international roaming services for outbound travellers from eight countries
to destinations in over 200 countries and territories around the world.
For more information, please contact: investors@flexiroam.com
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