Malaysian mobile virtual network operator, XOX, intends to undertake a 10% private placement to third party investors, which will be revealed at a later date, in a bid to raise RM6.95 million.
According to the Bursa filing, out of the RM6.95 million, approximately RM6,862 million will be set aside for branding and marketing expenses within the next 12 months.
In the filing, XOX described the telco industry to be “competitive” and subscribers are becoming increasingly discerning in selecting a mobile service provider. In order for the company to grow its market share, XOX has to constantly differentiate itself from other mobile service providers through various branding, marketing and pricing strategies.
These include increasing its marketing and branding efforts including product offerings, and ongoing consumer and dealer campaigns to promote its products. XOX also plans to conduct roadshows, PR and sponsorship events, and advertise on print, radio and online media.
It will also establish strategic partnerships to create engaging and attractive media content, and implement pricing and promotional strategies to attract new consumers and retain existing ones. XOX grew its mobile network subscribers base from 1.74 million in 31 July last year to 2.39 million during the same period this year. This was mainly due to the marketing and branding efforts it carried out, the filing said.
Last year, the company also completed a private placement exercise which raised RM8.37 million, and approximately RM8.26 million was used for branding and marketing expenses.
Meanwhile, XOX’s managing director, Datuk Chai Woon Chet, resigned last month “due to other personal commitment which require his full attention”. He was appointed to the role in January 2014 and was previously the marketing manager of Sanbumi Sawmill. Following his resignation, XOX appointed Ng Kok Heng and Tan Sik Eek as executive director and independent director respectively.