KUALA LUMPUR (May 8): PEOPLElogy Bhd, a provider of integrated development solutions focused on upskilling and reskilling talent, saw its initial public offering (IPO) oversubscribed by 0.24 times.
The firm is set to list on the ACE Market of Bursa Malaysia on May 20.
The group said it had received a total of 1,940 applications for 25.55 million new shares worth RM6.39 million from the Malaysian public, representing an oversubscription rate of 0.24 times.
Shares set aside for eligible persons were fully subscribed.
For the Bumiputera portion, 878 applications were received for 10.11 million shares, representing a subscription rate of 0.98 times.
According to PEOPLElogy’s prospectus, its IPO comprises entirely 105 million new shares. There is no separate tranche for the sale of existing shares, meaning that its current shareholders are not cashing out during the IPO.
Of the new issuance shares, 20.59 million were for the Malaysian public, and 12.35 million shares for eligible directors, employees, and contributors to the company's success.
Another 51.46 million shares were allocated for selected Bumiputera investors approved by the Ministry of International Trade and Industry (Miti), and 20.6 million shares for selected investors. Both tranches have been fully placed out.
Allotment of shares will be posted to all successful applicants on May 16.
The planned IPO is expected to raise RM26.25 million, based on the issue price of 25 sen per share.
PEOPLElogy is allocating 32.38% of the proceeds to build a computer simulation lab, with about 15.24% going towards the expansion of its research and development software.
The group plans to establish a Cyber Range simulation lab, as the demand for cyber security programmes has risen amid a growing number of online threats and data breaches affecting individuals, especially in Malaysia.
Funds raised will also be used for expansion of offices and training centres in Indonesia, the Philippines and East Malaysia, as well as the establishment of a regional office in Singapore.
PEOPLElogy’s net profit declined 5.7% to RM5.47 million in 2024 due to higher costs, though revenue rose 18.2% to RM29.24 million. Profit-after-tax margin fell to 18.7% from 23.4% in 2023.
PEOPLElogy founder and managing director Allen Lee and his wife Lim Szu Yee equally own PEOPLElogy currently. Post-IPO, Lee will remain its 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%.
PEOPLElogy is also backed by David Lim, who sits on the board of several listed companies, including Press Metal Aluminium Bhd (KL:PMETAL).
Other substantial shareholders are chairman of Hong Kong-listed Infinity Logistics and Transport Ventures Tan Sri Nelson Tan and Chen Khai Voon, who controls substantial shares in Seal Incorporated Bhd (KL:SEAL), Genetec Technology Bhd (KL:GENETEC) and TSA Group Bhd (KL:TSA).
Kenanga Investment Bank is the IPO’s principal adviser, sponsor, underwriter and placement agent.