(From left): Kenanga Investment Bank Bhd (Kenanga IB) head of corporate finance Alvin Ooi Yet Ming, director of corporate & institutional coverage Datuk Kenny Yong, and executive director, head of group investment banking & Islamic banking Datuk Roslan Tik, as well as PEOPLElogy Bhd non-independent executive director/managing director Allen Lee, independent non-executive chairman Datuk Seri Garry Chua, non-independent executive director/chief executive officer Cally Yau, and non-independent executive director/chief operating officer Joey Lee at PEOPLElogy Bhd’s IPO prospectus launch on Monday. (Photo by Zahid Izzani/The Edge)

KUALA LUMPUR (April 21): PEOPLElogy Bhd, which provides consultancy services and training, has launched its initial public offering (IPO) that could raise up to RM26.25 million on the ACE Market of Bursa Malaysia.

The IPO, priced at 25 sen per share, comprises entirely of 105 million new shares, according to its prospectus unveiled on Monday. There is no separate tranche for sale of existing shares, meaning that its current shareholders are not cashing out during the IPO.        

Application for the IPO will close on May 6, with the company scheduled for listing on May 20.

PEOPLElogy provides organisational talent consultancy and profile assessment services, as well as conduct training services and organises events and conferences. The company also sells online learning platforms and digital training systems.

At the IPO price, the company will have a market capitalisation of RM102.93 million, and valued at nearly 19 times its 2024 earnings upon listing.

PEOPLElogy is allocating 32.38% of proceeds to build a computer simulation lab, and about 15.24% for the expansion of their research and development software.

The company plans to establish a Cyber Range simulation lab, as the demand for cybersecurity programmes has risen amid growing number of online threats and data breaches affecting individuals, especially in Malaysia, said PEOPLElogy founder and managing director Allen Lee.

“PEOPLElogy has recognised the demand and urgency in equipping individuals and organisations with the skills and knowledge needed to conquer the digital world,” said Lee.

Funds raised will also be used for expansion of offices and training centres in Indonesia, 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.

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.

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%.

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.

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