Morph Labs Files for IPO

Morph Labs, a Cebu City, Philippine-based SaaS enabler, has registered for an P500 million (US$12.06 million) IPO on the Philippine Stock Exchange. It recently raised $1.5 million from CSK Venture Capital Co. (Japan) and  AO Capital Partners (Philippines).


Morph Labs, Inc., which provides Software-as-a-Service (SaaS) infrastructure and related services to its global clients, filed its Registration Statement with the Philippines Securities and Exchange Commission (SEC) April 4, formally notifying regulatory authorities of its intent to proceed with an initial public offering (IPO) planned for the second quarter of 2008.

The company also filed its Listing Application with the Philippine Stock Exchange (PSE) the same day.


Founded by successful serial entrepreneur Winston Damarillo, who currently sits as chairman of the board, Morph Labs has developed a product called Morph Application Platform to provide backend infrastructure for SaaS applications.


SaaS applications, unlike traditional software that is installed on computer hard disks, are delivered to users over the Internet and licensed for use by customers on a subscription basis. SaaS is expected to capture a 23 percent share of the $120 billion US software market by 2010 because it allows users to dramatically reduce IT capital and operating costs, making it particularly attractive to small- and medium-size businesses, according to industry experts.


A service called Morph AppSpace, available through an online marketplace for SaaS applications called Morph eXchange, allows SaaS application developers to set up the backend for their applications — a task that routinely requires two systems specialists two weeks to set up multiple servers — in just minutes online, according to Morph Labs CEO David Abramowski. “Morph AppSpace is a pre-built data center infrastructure for SaaS applications, utilizing virtual and actual servers along with data storage resources and is designed to speed up application developers' ability to deliver SaaS applications to the market,” said Abramowski.


According to Abramowski, over 100 SaaS developers are using Morph AppSpace for deploying, delivering and managing applications globally over the Internet.


Morph AppSpace was developed in the Philippines by Filipino engineers for the global market, according to Damarillo. Most SaaS application developers using the platform are international firms, he said. But he believes that Morph AppSpace holds great promise for local developers. “Morph AppSpace will hugely benefit our nation's software entrepreneurs who can now easily deliver their SaaS applications to customers regardless of where they are located.”

Damarillo is known throughout the industry for founding three successful technology start-ups prior to Morph Labs. Gluecode Software was acquired in 2005 by IBM and its products were incorporated into IBM's Websphere application server. LogicBlaze, a provider of open-source, service-oriented architecture technology, was acquired last year by Iona. Another startup, Exist Global, named to the Red Herring 100 Asia in 2006, is a software services company.


Based on the company's filings with the SEC and PSE, Morph Labs will offer a total of 99,397,251 new shares to the public representing about a third of the Company's issued and outstanding capital stock after the IPO. The company aims to raise about P500 million at an offer price of P4.50 to P5.80 per share in the first pure-play software intellectual property IPO in the Philippines.


Earlier this week, Morph Labs announced the closing of a US$1.5-million pre-IPO investment by AO Capital Partners, Limited, headquartered in Hong Kong, and its co-investor, Japan-based CSK Venture Capital Co. Ltd.


“The proceeds from the IPO will be used to partially finance the company's global expansion, which is an inevitable development given the rising demand for SaaS applications globally,” Damarillo said.


In late 2007, the Company launched its first application, Morph helpME which assists in the development of help and training sites. Morph has over 120 Morph AppSpace subscribers, over 185 Morph helpME subscribers and over 400 Morph eXchange subscribers.

Technology analyst firm IDC recently said that disruptive technologies like SaaS and Web 2.0 would become the norm in its 2008 forecast. “Disruptive technologies have been a persistent theme in IDC's predictions over the past several years,” Frank Gens, senior VP of Research at IDC, said.


About Morph Labs

Morph Labs ( ) is the leading enabler of Software as a Service (SaaS) that leverages virtual infrastructure and open source technologies to simplify the deployment, delivery, and management of web based applications.

Morph Labs uses virtual infrastructures including Amazon Web Services to provide a truly elastic environment for web applications that can be instantly provisioned and seamlessly scaled.

Morph Labs is a global company with headquarters in Cebu City, Philippines with additional in-country operations in Manila along with Los Angeles, California and Austin, Texas in the U.S.A.

TeamAsia Michael Alan Hamlin, +63 2 757 3500 Ext. 301 Managing Director