Virtual currency provider MOL Global sets terms for $263 million IPO

MOL Global, a Malaysian provider of online payment services mainly used for game credits, announced terms for its IPO on Tuesday. The Kuala Lumpur, Malaysia-based company plans to raise $263 million by offering 19.5 million shares (62% insider) at a price range of $12.50 to $14.50. At the midpoint of the proposed range, it would command a fully diluted market value of $919 million.

MOL Global could be the first Malaysia-based company to list on a US exchange in over ten years. Owned by Malaysian billionaire Vincent Tan, the company operates an online payment platform primarily used for for online gaming credits (MOLPoints), though Mol has invested in a suite of digital payment services. Its physical distribution network comprises over 970,000 locations across 13 countries, including an agreement with 7-Eleven Malaysia (controlled by Vincent Tan) to sell vouchers for MOLPoints and pre-paid mobile airtime.

Primary shareholders include Vincent Tan (45% post-IPO stake), Sultan Ibrahim Ismail (13%) and founder and CEO Ganesh Bangah (10%).

Revenue increased 34% to $62 million for the six months ended June 30, 2014, driven by a volume increase in MOLPoints, especially in Thailand, where mobile chat app LINE has grown (LINE accepts MOLPoints). However, the company notes that the volume of MOLPoints has decreased in Malaysia. Adjusted EBITDA increased 25% to $16 million (25% margin).

MOL Global, which was founded in 2000 and booked $62 million in sales for the 12 months ended June 30, 2014, plans to list on the NASDAQ under the symbol MOLG. Citi, Deutsche Bank and UBS Investment Bank are the joint bookrunners on the deal; Credit Suisse was removed as a bookrunner. It is expected to price during the week of October 6, 2014.