Multi-currency payroll and human resources company PayGroup is looking to raise between $5.5m and $8.5m in its IPO.
The IPO will see the company issue between 11 million and 15 million shares at $0.50 apiece, but PayGroup expects a market capitalisation of $22.8-$25.8 upon listing. Its listing will launch on 28 May.
Lodge Corporate is assisting the company with the IPO, which has already had ‘strong support’ from Australian and Singaporean institutional investors.
PayGroup is the holding company of PayAsia and provides business process outsourcing (BPO) and cloud-based human capital management (HCM) software for medium to large businesses. Headquartered in Melbourne, PayGroup gives its multi-national clients a platform to improve various workflows such as payroll, consulting, treasury and compliance.
Through its payroll services, businesses can access e-payslips, e-expenses, reporting, employee data management, and banking solutions for employee payments, among others. The company estimating revenue of $7.6m, a 15 per cent rise YoY, and has specified a pro-forma EBITDA of $2.8m for 2018.
These funds will be used to boost business growth through sales and marketing efforts in Australia, Singapore and Hong Kong. PayGroup will also build a sales enablement team to manage strategic relationships with HCM and BPO teams in the US and Europe. Part of the funds will be put towards developing the company’s technology platforms.
PayGroup managing director Mark Samlal said, “PayGroup is an established, proven and profitable business which provides investors with the opportunity to benefit from continued growth of multi-nationals entering Asia while leveraging the growing demand for human capital business processing outsourcing, both in the traditional service setting and the low-touch / self-service model for software-based solutions.”
Last month, fellow Australian payroll company Employment Hero collected AUD $8m in its Series B funding round co-led by SEEK and OneVentures.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
