In 2003, nine individuals who later became the co-founders of Pointwest envisioned a Filipino icon in the global Information Technology and Business Process Management (IT-BPM) industry. They aimed to show the world the caliber of top Filipino IT talent.
Today, Pointwest Technologies Corporation is a leading 100% Filipino-owned service company with a proven track record in the IT-BPM industry. The company provides non-voice, higher-value services to Fortune 500 companies and a growing number of firms in the Philippines, New Zealand and Australia. Pointwest has continued to be profitable every year since it started operations.
Pointwest is a strategic IT partner for small to large enterprises who need to transform their businesses for the new digital economy. The company helps increase operational efficiency and enables innovation in selected industries such as transportation and logistics, healthcare, banking and finance, retail, gas, energy, media and entertainment, and the public sector. Majority of the company’s top accounts are Fortune 100 US companies, with the top two maintaining more than a decade of growing partnership.
Summary of Offering Details:
Offer: 417,000,000 common shares (278M- Primary; 139M -Secondary)
Offer Price: Up to ₱4.35 per Share
Joint Issue Managers, Joint Lead Underwriters, and Joint Bookrunners: SB Capital Investment Corporation and Maybank ATR Kim Eng Capital Partners
Outstanding: 1,653,000,020 (approx 25% of the company will be float)
Company Net Proceeds: approximately ₱[1,098.89] million
Secondary Shares (Proceeds on Owners’ Pockets): approximately ₱[794.46] million, assuming full exercise of the Over-allotment option
(FT Comment: Quite a hefty block of secondary shares!)
[83,424,000] Firm Shares are being offered to the PSE Trading Participants with [632,000] Firm Shares allocated to each of the 132 active PSE Trading Participants. [41,700,000] Firm Shares are being offered to local small investors (the “LSIs”) under the Local Small Investors Program. Remaining [291,876,000] Firm Shares (or approximately 70% of the total Offer Shares) shall be distributed by the underwriters to institutional buyers and to the general public.
In the last five years, the Company maintained a CAGR of 19.41% in net revenues and 11.91% in EBITDA. For the three years ended December 31, 2014, 2013 and 2012, and the six-month period ended June 30, 2015, the Company’s revenues amounted to US$31.3 million, US$28.1 million, US$25 million and US$17.9 million, respectively, while the net income ratio range from 15% to 19%. These figures were achieved through organic growth while maintaining a zero debt ratio
The Company helps small to large enterprises meet their business goals and increase operational efficiencies. From three clients by the end of 2003, the Company has served a total of 71 unique small to large corporate accounts, of which 37 are currently active. Majority of the Company’s top accounts are with Fortune 500 U.S. companies, with the top two clients maintaining more than a decade of growing partnership with the Company. Among the Company’s major clients in the U.S. are Delta Airlines and JB Hunt Transport, while its roster of clients in the Philippines include Bank of the Philippine Islands, Bancnet, Globe-BPI BanKO, Social Security System and Department of Environment and Natural Resources.
The Company offers a wide variety of IT-BPM enterprise services to its clients namely software application development, software application maintenance and production support, independent software testing and business process management services. The Company considers itself as an emerging player in offering digital products and services in the areas of mobility, cloud and analytics. These services provide value by using technology systems to optimize the operational efficiency of the client’s business processes and through technology innovation contributes to the revenue goals of the clients.
The Company has been the partner of Delta Airlines since 2003. Its partnership with Delta Airlines as the latter’s niche provider of IT services has supported the airline’s business by improving its operational efficiency. According to Delta Airlines, its self service kiosks reduced the average wait of passengers by as much as 45% in 2014. The technology innovations introduced by the Company in luggage handling management systems also helped Delta Airlines transport 121 million bags in 2012.
The Company also helped BPI-Globe BanKO (“BanKO”) since the latter’s inception in 2011. BanKO introduced a mobile banking business model to revolutionize the banking industry and achieve financial inclusion by offering the first mobile phone-based savings bank that provides loans, bills payment, financing, and other banking solutions for the unbanked sector in the Philippines. The Company uses emerging technologies to help BanKO provide access to micro financial services to 68% of the households in the Philippines who remain unbanked and underbanked. BanKO has now more than one million account holders by building and maintaining their mobile banking technology platform that interfaces with BanKO’s strategic partners and vendors. The Company believes that the world is going digital and that digital technologies will increase global economic valueadded by about US$1.3 trillion by 2020. Digital economy means catering to the next generation of market needs driven by digital consumers, emerging economies and the digital way of doing business. Game-changing technologies such as SMAC are making digital transformation possible. The Company has made investments to position itself as an emerging player in helping majority of its clients in their journey into digital transformation by making their business and services easily available through different channels and customer touch points. The Company has established Centers of Excellence (“COEs”) in mobile, cloud and analytics as the center of research and development effort to design new digital services and development programs to equip the Company’s workforce with the necessary skills. In 2014, the Company created its own software product incubation space called “Pointwest Labs” to create highly engaging and commercially viable digital products. Pointwest Labs has successfully developed several products in various stages of commercial launch such as ARKO, which is a flood hazard and extreme weather monitoring mobile application that culls data from the Philippine Government’s Project for Nationwide Operational Assessment of Hazards (“Project NOAH”). ARKO has a free version for the general public who needs timely flood level alerts, and an enterprise edition for companies such as utility, energy and insurance companies that require hazard mapping and decision support systems. Aside from ARKO, the Company has also launched initial releases of four other digital products namely (i) Easimed, a suite of mobile applications and applications for the healthcare industry, (ii) Autoparq, a mobile application for searching parking spaces, (iii) EESY, a mobile application for engaging participants during events and conferences, and (iv) Centerpoint, a web-based service management application with mobile component for service request fulfillment services. The Company believes that it has a globally competitive talent pool in the Philippine IT-BPM industry, as attested by the size of enterprises that they service. By introducing an employee competency-based human capital management framework, the Company has grown its resource group of nine in 2003 to 1,186 as of June 30, 2015. The Company’s talent pool consists of skilled and experienced IT professionals which include project and technical managers, software application developers, business analysts, technical architects, usability designers, test analysts, and BPM specialists composed of registered pharmacists, registered nurses and data analysts for its healthcare client, all with broad experience in IT-BPM industry. The Company is known for its stringent hiring process and enviable learning and development programs that offers IT-BPM careers to its multi-disciplinary workforce. As a technology service company in the IT-BPM industry where there is a shortage of highly skilled professionals, the Company believes that strategic approach is key to maintaining a competent talent pool. The Company has institutionalized a feeder development program called “Bootcamp for Freshers” to bring in fresh graduates from top universities and colleges in the country and to produce software engineers that meet global standards in skills. A total of 938 graduates from different universities have gone through this feeder development program which started in 2004. The Company invested close to ₱200 million to make said program successful. This feeder program and other retention programs has helped the Company keep the average attrition rates at manageable levels in the last five years for both its IT and BPM talent pools.