HRnetOne: HRnetGroup launches $174.1 mil IPO at 90 cents per share

SINGAPORE (June 8): Local recruitment firm HRnetGroup has lodged a prospectus for an initial public offering (IPO) to raise $174.1 million for 89.5 million shares, at an offer price of 90 cents per share.In the group's products highlights sheet uploaded to the OPERA system of Monetary Authority of Singapore's (MAS) website on Thursday, it is disclosed that about 85.7 million shares will be offered under the placement - whereas 3.8 million shares will be offered under a public tranche, including 440,800 shares reserved for the directors and employees of the company and its subsidiaries.HRnetGroup expects to raise $165.8 of net proceeds from the offering and the issue of its cornerstone shares, assuming that the over-allotment option is not exercised.However, should the said option be exercised in full, an estimated $175.6 million in net proceeds is expected, as up to an aggregate of 11.1 million new shares may be issued.The company says it intends to use the net proceeds and the issue of its cornerstone shares, which amount to 95.3 cents for each dollar of gross proceeds raised from the offering and share issuance, for business expansion or potential opportunistic acquisitions.Its cornerstone investors include Aberdeen Asset Management Asia, Credit Suisse AG's Singapore and Hong Kong branches, FIL Investment Management (Hong Kong), and TechnoPro Holdings, among others.HRnetGroup does not have a fixed dividend policy, but says its directors intend to recommend and distribute dividends of 50% of its net profit after tax, excluding exceptional items, for FY17 and FY18 as it wishes to reward shareholders for participating in its growth.The company was incorporated in Sept 21 last year, and claims to be the largest Asia-based recruitment agency in Asia Pacific ex-Japan.Temasek's investment arm Heliconia Capital was announced to have invested an undisclosed amount in HRnetGroup in Feb 2017.As at end-2016, the group operates in 10 Asian growth cities, namely: Singapore, Kuala Lumpur, Bangkok, Hong Kong, Taipei, Guangzhou, Shanghai, Beijing, Tokyo and Seoul.