Singapore: HRnetGroup to conduct $124.6m listing on SGX

Human resources. Pixabay.

Singapore-based recruitment firm HRnetGroup has lodged a preliminary prospectus for a listing on the SGX Mainboard that will see it raise up to S$175 million ($124.6 million).

It counts Heliconia Capital Management, a unit of Temasek Holdings, as an investor following an undisclosed investment earlier this year. It is expected to maintain an equity interest of about 2 per cent post-IPO.

The company plans to issue 194 million new shares priced at between S$0.80 to S$0.90 per share and is expected to commence trading on 16 June 2017. Additionally, there is a greenshoe option or provision to sell more shares than originally planned, of 11 million shares. This amounts to  1.1 per cent of the enlarged share capital.

Deutsche Bank is the sole issue manager for the deal, as well as a joint global co-ordinator and bookrunner with Credit Suisse. DBS and Nomura are also on the book-running team. Founded in 1992 as HRnetOne by chairman Peter Sim, it offers professional recruitment and flexible staffing.

The financial terms see HRnetGroup priced as a mid-cap firm (i.e. a company with a market capitalisation between $300 million and $2 billion), given an estimated market capitalisation of up to S$910 million ($657.4 million). With the greenshoe option exercised, this increase to S$920 million ($664.7 million).

2016 saw HRnetGroup post revenue of S$365 million and S$48.4 million in net profit, with 1998 being the sole year it did not report profitability. It maintains operations in Singapore, Kuala Lumpur, Bangkok, Hong Kong, Taipei, Guangzhou, Shanghai, Beijing, Tokyo and Seoul.

The IPO proceeds will finance business expansion and potential acquisitions, with the firm reporting a cash balance of S$106 million as at 31 December 2016. It plans to further engage its senior employees through allowing them to become shareholders and share its profits.

More than 50 per cent of the total offer size is subscribed to by seven cornerstone investors: Aberdeen Asset Management, Affin Hwang Asset Management, Credit Suisse on behalf of private banking clients, FIL Investment Management (Hong Kong) and Meiji Yasuda Asset Management Company.

This development sees 84 million private placement shares remaining, with 6 million shares on offer to retail investors. Strategic investors who’ve backed the recruitment firm include Japan’s TechnoPro, a technology-focused staffing and service companies, and Jasdaq-listed recruiter en-japan inc.

Post-IPO,  Sim’s family vehicle, Simco, will hold about 74 per cent of its equity. Simco and Heliconia have committed to a six-month lockup period from the listing date.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.