Allen Lee, non-Independent executive director and managing director of PEOPLElogy at the launch of the Prospectus — AZLINA ABDULLAH/The Star
KUALA LUMPUR: ACE Market-bound PEOPLElogy Bhd
aims to raise RM26.25mil via its initial public offering (IPO) as the group plans to expand its business across South-East Asia.
The group is principally involved in the provision of integrated people development solutions.
Priced at 25 sen a piece, the group had issued a public offering of 105 million new shares and is slated to list on May 20.
Explaining a little more about the group’s expansion plans, managing director Allen Lee said PEOPLElogy will replicate its current business model for expansion in Sabah and Sarawak, Indonesia and Philippines.
Despite the current geopolitical tensions impacting the global economy, Lee said the group remains optimistic and said, “We are aware that the market is a little bit uncertain, but I believe that everything happens for a reason.
“Regardless of the market so far, the tariffs do not affect us. I believe that there is no right time, so we just need to play with the situation,” he said during a press conference after the PEOPLElogy’s prospectus launch here yesterday.
He then highlighted the potential in Sabah and Sarawak, which he said presents a golden opportunity for the group considering the state’s emphasis on digital talent.
The group has allocated about 15% of the total proceeds of the IPO for the development of offices and training centres in Sabah Sarawak, Indonesia and the Philippines.
PEOPLElogy also plans to set up a regional office in Singapore, with an allocation of RM100,000 or 0.38% of the total proceeds from the IPO exercise.
“Our Singapore entity will also serve as a regional business development hub to market our people development solutions across the Asean region,” he added.
Lee stated that the group intends to establish a cyber range computer simulation lab, with 32.38% of the IPO proceeds or RM8.5mil.
This was considering the increased demand for cybersecurity programmes due to the growing number of cyber threats and data breaches impacting individuals qnd especially organisations in Malaysia.
The group has yet to identify a location suitable for the simulation lab.
“Other than that, PEOPLElogy also sees opportunities in the digital segment and aims to extend this segment via research and development of software through the development of our own enterprise resource planning software to manage our company’s operations under this segment,” he said.
A total of RM3mil has been allocated for the plan.
PEOPLElogy is also looking at mergers and acquisitions (M&A) as a part of its growth strategy and is setting RM4mil for the purpose.
Lee stated that as of now, several players across different sectors are currently talking to the group about M&A plans.
The remainder of the proceeds has been allotted for general working capital and listing expenses at RM2.4mil and RM4.35mil, respectively.
PEOPLElogy posted a net profit of RM5.47mil and revenue of RM29.24mil for last year.
Yayasan Peneraju, a talent development organisation for bumiputras, is one of the group’s major clients, contributing to 51.18% of the group’s total revenue last year.
Upon listing, PEOPLElogy is expected to have a market capitalisation of RM102.93mil.
Applications for the public issue are now open and will close on May 6, at 5pm.
