DMX Technologies : assessing the risks amidst rapid expansion

Abstract

At the end of 2002, Mr Giang Phung, the Chief Executive of DMX Technologies was assessing the opportunities and the risk exposures of the company he established. The company started operation in 2000 providing network solutions. It instituted the existing core management in early 2001. Focusing on developing its proprietary e-solutions, the company was founded on the philosophy that it should be capable of selecting the best products from different vendors and integrating these into its own value added software solutions for the benefit of its clients.

A strong management team gave Phung the assurance that the company was able to meet the challenges ahead as many of the members were the key persons from other similar established companies. Amidst all these exciting developments, Phung was concerned about the risk exposures associated with rapid regional expansion. Despite its healthy revenue, the company required a substantial cash infusion to fund its R&D efforts and ambitious regional expansion plan. The proposed IPO that aimed to raise S$9.4 million would benefit those two endeavours. Period covered 2000 – 2002