Payroll and Human Capital Specialist for Asia-Pacific Region, PayGroup Launches IPO to List on ASX

19-Apr-2018 Intellasia | BusinessWire | 11:11 AM Print This Post


  • PayGroup provides Business Process Outsourcing (BPO) for payroll,
    benefits and Human Capital Management Services (HCM) catering to the
    unique multi-country needs for companies operating in the Asia-Pacific
  • 11-year track record, servicing over 400 clients’ entities across
    18 countries
  • Estimated annual dividend of 6% based on performance to 31 March
    2018 (Pro-Forma EBITDA $2.7m)
  • BPO in the fast-moving market Asia-Pacific region is worth $20b,
    with significant growth opportunity – CAGR of 11%
  • Experienced Board and Management, including Ian Basser, former MD
    of Chandler McLeod as Chair

MELBOURNE, Australia–(BUSINESS WIRE)–PayGroup Limited (PayGroup, the Group), a trusted provider of
Multi-Country Payroll and Human Resource Outsourcing Solutions, is
pleased to announce the opening of its Initial Public Offering (IPO) to
raise between $5.5 million and $8.5 million.

PayGroup is the holding company for PayAsia, providing world class
Business Process Outsourcing (BPO) and Cloud based Human Capital
Management (HCM) software for medium to large multinational companies
with employees spread across multiple countries.

Through the IPO, PayGroup will issue between 11 million and 15 million
shares at $0.50 per share, with an expected market capitalisation of
~$22.8-25.8 million upon listing.

PayGroup is headquartered in Singapore. Its long list of prestigious
clients include Appen (ASX:APX), Bossard (SWX: BOSN), Lexmark,
Meindhardt, Shire (LON:SHP), Etika and World Vision. PayGroup is also a
referral partner for US-listed global human capital management players,
Cornerstone On-Demand (NASDAQ:CSOD) and Ultimate Software (NASDAQ:ULTI).

The company is forecasting revenue of $7.6m, an increase of 15% YOY, on
a pro-forma basis, for FY18 and intends to pay a dividend. Most of its
customers are on three-year contracts, with automated 12-month renewals,
providing a verifiable indication of future revenue flow. PayGroup has
also indicated pro-forma EBITDA for FY18 of $2.8m and NPAT of $2.6m.

The company was founded by current Managing Director, Mark Samlal who
was raised and educated in Melbourne, and has more than 22 years
industry experience, including Director of Automatic Data Processing
(ADP) in Australia, one of the leading global players in outsourced
payroll processing. In addition to Mr Samlal, the experienced board will
also consist of Non-Executive Chairman, Ian Basser, who has over 28
years of global business experience. David Fagan, currently
Non-Executive Director of Medibank Private, will join the board as
Non-Executive Director, alongside Executive Director Franck Neron-Bancel
who has over 21 years industry experience in global HCM and payroll
services with global leader Automatic Data Processing, Inc. (NASDAQ:ADP).

PayGroup Managing Director, Mark Samlal said, “PayGroup is an
established, proven and profitable business which provides investors
with the opportunity to benefit from continued growth of multi-nationals
entering Asia while leveraging the growing demand for human capital
business processing outsourcing, both in the traditional service setting
and the low-touch / self-service model for software-based solutions.

“Many companies and service providers under-estimate the complexity,
time and cost of performing these crucial business functions across
multiple countries in Asia. PayGroup’s brings the in-market knowledge –
we’ve grown up in Asia – and that makes a big difference, it’s why we
have succeeded.”

The Company is raising the funds with the assistance of lead manager,
Lodge Corporate Pty Ltd, and has received strong support from
institutional investors in Australia and Singapore. The offer is being
conducted to allow PayGroup to target accelerated business growth
through increased sales and marketing activities, including adding and
establishing resources in the key selling markets of Melbourne, Sydney,
Singapore, and Hong Kong. The Group will also establish a Sales
Enablement division to manage strategic relationships with HCM and BPO
leaders in the US and Europe. Funds raised will also be directed towards
the Group’s technology platforms to increase efficiency and grow its
capacity to service clients.

PayGroup has several channels for revenue growth, including marketing
additional products to current clients, expanding the client base,
partnership and alliance expansion, conversion of third party
technologies to the Group’s cloud based platforms, treasury functions
and near-term potential corporate payroll debit cards.

The offer is expected to close 10 May 2018, and PayGroup’s anticipated
listing will occur on 28 May 2018, under the ticker code “PYG”. The
prospectus is available via the IPO microsite at

About PayGroup

Headquartered in Melbourne Australia, PayGroup is the holding company of
Pay Asia Pte Limited. Pay Asia, headquartered in Singapore, is a trusted
provider Multi-Country Payroll and cloud based Software as a Service
(SaaS) Human Resource Outsourcing Solutions. Asia-Pacific is one of the
most complex markets in the world for multinational companies to operate
in. PayGroup simplifies this by providing clients with a consolidated
view of their workforce whether utilizing Business Process Outsourcing
(BPO) or cloud-based services, reducing their operational and compliance
risk by bringing regulatory expertise and world-class service to areas
in which clients operate.


For further information, please contact:
PayGroup Limited
Managing Director
[email protected]
Kyahn Williamson, +61 3 8866 4722
[email protected]


Category: BusinessWire, PRAsia

Print This Post

Comments are closed.