MediaRing Placement Raises $15M

VOIP service provider MediaRing announces S$24.14M placement to expand through acquisitions and investments

August 30, 2005

2 Min Read

SINGAPORE -- Singapore Main board-listed MediaRing Limited (M09.SI) (, the leader of pure-play VoIP telephony service providers in Asia, is beefing up its financial resources to allow it to expand its business through acquisition and investments in the Asia-Pacific region.

The Company announced today that it has entered into a placement agreement with Venture One Finance Limited which will subscribe for up to an aggregate of 150.33 million new shares, representing approximately 20% of the capital of MediaRing.

At the agreed placement price of $0.1608 per share, the net proceeds from the placement will amount to approximately S$24.14 million (equivalent to about US$15 million).

This, together with its existing cash of US$35 million, will substantially strengthen MediaRing's financial resources, raising its total "war chest" to more than US$50 million.

Commenting on the latest fund-raising exercise, Mr. Khaw Kheng Joo, CEO of MediaRing, says, "We have completed the restructuring and turnaround of MediaRing, as reflected in our most recent financial results. We need now to seriously look at scaling up to become a key player in the VoIP space. And in order to do this, it is important for us to have the financial resources to go after new acquisitions and/or investments in assets or businesses which are synergistic with our business."

On 12 August 2005, MediaRing reported its second consecutive half year net profit of US$1.2 million driven by strong growth in revenue. Group revenue surged 91% to US$44.4 million from US$23.3 million in 1H 2004, mainly due to continued strong growth in its VoIP retail operations.

Venture One Finance, the subscriber, is owned by NewSmith Capital Partners (Asia) Pte Ltd and Granite Global Ventures II, LP.

New Smith Capital Partners is an independent investment management and corporate advisory partnership with offices in London and Singapore. Wholly owned and financed by its equity partners, the partnership provides asset management services via NewSmith Asset Management LLP which has US$4billion of funds under management and corporate finance advice through NewSmith Financial Solutions Ltd.

Granite Global Ventures is an expansion stage venture capital firm focused on information technology and healthcare investments. It was founded in partnership with Venrock Associates to bring differentiated value to entrepreneurs. Granite Global Ventures works with entrepreneurial companies that have completed product development and have established customer relationships but are seeking growth capital to expand their businesses.

"We welcome Venture One as a shareholder and I am sure they will be able to contribute to the further growth and expansion of the Company," says Mr. Khaw.

MediaRing Ltd.

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