KUALA LUMPUR (May 20): PEOPLElogy Bhd (KL:PEOPLE) rose on its listing debut, snapping a streak of first-day decline on the ACE Market in the past two months, after the consultancy and training firm’s share sale raised RM26.25 million.
Shares of PEOPLElogy opened at 24 sen versus its initial public offering (IPO) price of 25 sen apiece. The stock began rebounding within half an hour and hit a high of 27 sen, before closing at 26.5 sen for a 6% gain after close to 48 million shares changed hands.
The rise stood in contrast to the weakness of larger-cap stocks on Tuesday. The benchmark 30-stock FBM KLCI was down 0.5% while a gauge of the country’s top 100 stocks by market capitalisation dipped 0.3%.
The first-day pop is offering hope for the ACE Market following a string of flops. Before PEOPLElogy’s debut, all nine companies listed since March have ended their first day of trading underwater. Some IPOs saw limited investor interest during the order-taking period.
PEOPLElogy’s own IPO saw tepid demand as applications from investors barely covered the amount of shares offered for subscription.
Nearly one-third of the IPO proceeds raised will be used to build a computer simulation lab and to expand research and development software.
Funds raised will also be used for expansion of offices and training centres in Indonesia, the Philippines and East Malaysia, as well as establishment of a regional office in Singapore. The rest is for general working capital and to cover listing-related expenses.
There was no sale of existing shares, meaning that current shareholders are not cashing out. PEOPLElogy founder and managing director Allen Lee is the largest shareholder post-listing, with a 24.27% direct stake and another 21.01% indirectly through his private vehicle. His wife Lim Szu Yee owns 4.69% of PEOPLElogy.
PEOPLElogy is also backed by David Lim, who sits on the board of several listed companies, including Press Metal Aluminium Holdings Bhd (KL:PMETAL).
Other substantial shareholders are chairman of Hong Kong-listed Infinity Logistics and Transport Ventures Tan Sri Nelson Tan, and Aaron 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 principal adviser, sponsor, underwriter and placement agent for the IPO.
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