Recruitment firm HRnetGroup completed its first day of trading on SGX with its stock rising a little higher than its IPO price. The firm had launched its S$174 million initial public offering (IPO) on the SGX mainboard for about 193.4 million shares.
On Friday, its stock closed at S$0.925, reaching a high of S$0.96 during the day, above its IPO price of S$0.90 per share.
The firm’s public offering was 68.3 times subscribed by retail investors with a total value of S$206.6 million. Approximately 103.9 million new shares were allocated to cornerstone investors that include Aberdeen Asset Management Asia, Affin Hwang Asset Management Berhad, Credit Suisse AG, Singapore Branch, Credit Suisse AG, Hong Kong Branch and Meiji Yasuda Asset Management Company.
HRnetGroup Limited provides professional recruitment services primarily under an array of brands: “HRnet One”, “PeopleSearch”, “PeopleFirst” and “SearchAsia”. In addition, it offers flexible staffing solutions through its “RecruitExpress” and “RecruitFirst” brands.
“This IPO will be an inflexion point for the Group, as up to 404 additional employees will become co-owners whose interests would be to drive our growth to the next level and achieve profit leadership in every city we operate in. Coupled with the war chest from the IPO proceeds for business expansion and possible opportunistic acquisitions, we are very excited about the Group’s growth prospects,” said Adeline Sim, Executive Director, HRnetGroup.
In aggregate, the placement and public tranche – excluding reserved shares – was 15.3 times subscribed. As part of its IPO, HRnetGroup granted to the joint bookrunners and underwriters an over-allotment option to subscribe for up to an aggregate of 11.1 million additional shares. This grants it a market capitalisation of S$895.68 million ($647.44 million).
This listing brings the total number of SGX-listed companies to 753, with combined market capitalisation of more than S$1 trillion. Chew Sutat, Head of Equities and Fixed Income, SGX, commented: “The listing of HRnetGroup Limited marks a milestone for the company as well as SGX, as it is the first recruitment agency to list on our Mainboard.”
“The established track record and growth prospects of HRnetGroup Limited has attracted several prominent cornerstone investors to its listing. As its chosen listing platform, we look forward to supporting the company as it deepens and expands its market presence in Asia, with a focus in North Asia.”