Not even a sluggish stock market could prevent Diversified Financial Network, Inc. (DFNN.com) from undertaking an initial public offering as the company gears up for its expansion plans along global lines, the way information technology (IT) firms basically shape their businesses.
DFNN.com earned yesterday the distinction of being the first fully operating web-based company to list its shares at the Philippine Stock Exchange, as most of the listed Internet stocks resulted from transforming or backdoor listing “old economy” ventures such as mining and oil into this entirely new business.
Established in June 1999 with an initial capitalization of P30 million, DFNN initially provided online stock trading services to PSE-member clients such as Mark Securities, All Asia Securities, Vickers Ballas, and Anscor Hagedorn Securities, on top of its own trading house Diversified Securities.
The firm soon expanded into an integrated application service provider (ASP) offering a host of financial and information services; as well as forging tie-ups with strategic partners, the latest of which is philstar.com, the online arm of The Philippine STAR.
Under the agreement, DFNN.com will furnish philstar.com with real-time financial market information covering the Asian region and key countries worldwide, providing the latterÃ¢â‚¬â„¢s users with easy access to current stock prices and currency movements, daily news on the equity and banking sector, a currency converter, and a page where users can build their portfolio.
DFNN provides software technology to financial institutions, allowing them to offer transactional services to their clients over the Internet. Moreover, through its website, the company provides users free access to timely news, general stock market and macroeconomic indicators, including technical charts, graphs and research reports.
Yesterday, DFNN listed one-fourth of its total stocks Ã¢â‚¬â€œ only the fourth new listing this year after Sun Life, Active Alliance and Globe Telecom Holdings Ã¢â‚¬â€œ at the PSE to raise about P150 million for its expansion, mainly on the establishment of 200 Internet kiosks nationwide over the next three years.
DFNN president Ramon Garcia Jr. said a portion of the proceeds will be used to expand operations in select Southeast Asian countries with promising e-commerce prospects, including establishing joint venture deals with local partners in Thailand, India and Indonesia.
“The initial public offering will now give us two currencies, stock as well as cash. This will assist the company should we see opportunities for us to partner or acquire other corporations,” Garcia added.