IPO Details

Purpose of IPO: PEOPLElogy aims to raise RM26.25 million through the issuance of 105 million new shares at RM0.25 each. The proceeds are allocated as follows:

• Expansion into East Malaysia and Southeast Asia (Kota Kinabalu, Kuching, Indonesia, Philippines, and a regional office in Singapore).

• Establishment of a computer simulation lab to enhance cybersecurity, big data, and AI programs.

• Research and development, working capital, and listing expenses.

Oversubscription: The IPO was oversubscribed by 1.24 times, indicating strong investor interest.

IPO Placement and Outstanding Shares

• Shares Offered: 105 million new shares at RM0.25 per share.

• Outstanding Shares Post-IPO: 411.72 million shares.

• Market Capitalization: Approximately RM102.93 million based on the IPO price.

Given the oversubscription and strategic expansion plans, the IPO is likely to perform well on its first day of listing.

Institutional and Anchor Investors

• Institutional Investors: Specific names of institutional or anchor investors have not been disclosed.

Investment Banker, Underwriter, and Sponsors

• Principal Adviser, Sponsor, Underwriter, and Placement Agent: Kenanga Investment Bank Bhd.

The involvement of a reputable financial institution like Kenanga Investment Bank Bhd adds credibility and is likely to positively influence the IPO’s performance.

Company Overview

Business Model and Industry: PEOPLElogy is an integrated people development solutions provider, offering talent consultancy, ICT training, digital skills certification, event organization, and digital learning platforms.

Financial Health:

• Revenue (2023): RM24.73 million

• Net Profit (2023): RM5.8 million

• Net Profit (Q1 2024): RM42,000

Market Position: PEOPLElogy operates across three segments: Development, Digital, and Discovery, targeting B2B, B2G, and B2C markets in Malaysia and Southeast Asia.

Management Team:

• Managing Director: Allen Lee

• Chief Executive Officer: Cally Yau

• Chief Operating Officer: Joey Lee

Market and Economic Factors

Sector Trends: Malaysia’s talent development market reached RM16.0 billion in 2023, with a CAGR of 21.7% since 2021. Digital training programs have shown even faster growth at 24.0% CAGR. The market is projected to reach RM34.7 billion by 2027.

Timing of IPO: The IPO is scheduled for listing on May 20, 2025.

Economic Environment: The increasing need for a digitally skilled workforce in Malaysia supports the demand for PEOPLElogy’s services.

Risk Factors:

• Dependence on key clients (e.g., Yayasan Peneraju contributed 45% to revenue in 2023)

• Economic downturns affecting training budgets

• Competition from other training providers

Growth Strategy: PEOPLElogy plans to expand its presence in East Malaysia and Southeast Asia, establish new training centers, and invest in R&D for digital platforms.

Ownership Structure: Post-IPO, the company’s enlarged issued share capital will be 411.72 million shares.

Research and Expert Opinions

Mercury Securities: Recommends subscribing to the IPO with a fair value of RM0.28, based on a 15.4x FY2026E EPS, translating to a 12% potential upside.

IPO Allotment Result

Oversubscription: The IPO was oversubscribed by 1.24 times, indicating strong investor interest.

Investment Recommendation and Price Estimate

Given the company’s strategic expansion plans, strong market demand for digital training, and positive analyst recommendations, the IPO appears to be a promising investment. The stock is expected to trade slightly above its IPO price of RM0.25 on the first day of listing.

Prospectus Download

The IPO prospectus can be downloaded from Bursa Malaysia’s website

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