KUALA LUMPUR (April 21): PEOPLElogy Bhd, a provider of integrated development solutions focused on upskilling and reskilling talent, is currently in discussions with several training providers and consulting firms across Malaysia and Southeast Asia for potential mergers and acquisitions (M&As), said its founder and managing director Allen Lee.
The company, which primarily operates in Peninsular Malaysia — namely Kuala Lumpur, Johor and Penang — offers a range of services including organisational talent consultancy and assessments, ICT and soft skills training, leadership development, digital skills certification, as well as a learning management system and an AI-curated online learning platform.
As part of its growth strategy, PEOPLElogy has allocated RM4 million — or 15.24% of the RM26.25 million gross proceeds raised from its initial public offering (IPO) — for strategic investments and M&A activities that align with and complement its core business.
Lee said the company is selective in pursuing M&As, focusing on those that offer clear value propositions.
“I’ve visited around 60 training providers and consulting firms, and we’re still in discussions with about six of them,” Lee told reporters at the launch of PEOPLElogy’s prospectus ahead of its ACE Market debut on May 20.
“We’re not looking to simply promote others’ training or consulting services. Any partner we work with must understand our 6D framework, which is solely focused on driving digital workforce transformation,” he added.
Lee and his wife Lim Szu Yee equally own PEOPLElogy currently. Post-IPO, Lee will remain as the largest shareholder, with a 24.27% direct stake and another 21.01% indirectly through his private vehicle PEOPLElogists Sdn Bhd, while Lim will own 4.69%.
Lee admitted there's market uncertainty due to the global downturn, but said it won't stop PEOPLElogy from moving forward with its listing plans.
“I’ve experienced both good times and bad times, but our purpose remains clear — to get listed and move forward with our bigger plans. The US tariff hasn't impacted us so far, and while there’s never a perfect time, we just have to adapt to the situation,” he said.
Beyond funding mergers and acquisitions, the group has earmarked 32.38% of its IPO proceeds to establish a cyber range simulation lab, in response to rising demand for cybersecurity training amid increasing cyber threats and data breaches affecting individuals and organisations.
Another 11.43% will go towards developing PEOPLElogy’s proprietary enterprise resource planning (ERP) software to better manage its operations. Additionally, 14.86% has been allocated for the expansion of offices and training centres in Kuching, Kota Kinabalu, as well as in Indonesia and the Philippines. A further 0.38% will be used to set up a regional office in Singapore.
The remaining proceeds will be used for estimated listing expenses (16.57%) and general working capital (9.14%).
At the IPO price of 25 sen per share, the company will have a market capitalisation of RM102.93 million. Kenanga Investment Bank is the IPO’s principal adviser, sponsor, underwriter and placement agent.