Singapore-based payroll company PayGroup is reportedly seeking up to $6.5 million from an initial public offering (IPO), the firm said Thursday (April 19).
PayGroup provides multi-currency payroll and human resources solutions; the firm also serves as the holding company for PayAsia, a cloud human capital management software and business process outsourcing provider to medium-sized and large, multinational conglomerates with operations in multiple countries.
The company’s IPO on the Australian Securities Exchange (ASX) will see the company issue between 11 million and 15 million shares. It expects its market capitalization to land between $17.6 million and $19.9 million, the firm said.
PayGroup’s latest forecasts expect a 15 percent year-over-year increase in revenue, hitting $5.87 million for fiscal year 2018.
“PayGroup is an established, proven and profitable business which provides investors with the opportunity to benefit from continued growth of multinationals 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,” said PayGroup managing director Mark Samlal in a statement.
“Many companies and service providers underestimate the complexity, time and cost of performing these crucial business functions across multiple countries in Asia. PayGroup brings the in-market knowledge — we’ve grown up in Asia — and that makes a big difference. It’s why we have succeeded.”
Last December, another payroll company, Ascender, announced its own plans to float on the ASX. At the time, the firm secured $76.6 million in equity from HarbourVest Partners, which also owns a majority stake in the company. Based in Australia, Ascender is the largest payroll software firm both in Australia and New Zealand, and its ASX float could lead to a market value surpassing $191 million.
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