Greater access to IPOs through OnMarket BookBuilds

State One has partnered with OnMarket BookBuilds to provide our clients with even more investment opportunities. In addition to the exclusive capital raisings that State One undertakes and offers to our clients, you can now take advantage of offers from OnMarket. Our association with OnMarket will allow you to bid directly on IPOs and have the shares allocated straight to your holdings at State One. Through OnMarket our clients will also be able to access free research, management interviews and get notifications on upcoming IPOs.

OnMarket is Australia’s first online platform that lets all investors buy shares in IPOs free of any fees other than the cost of the shares. Since launching in October 2015 OnMarket has hosted 1 in 3 ASX IPOs, so we are obviously excited to be able to offer our clients access to this cutting-edge platform. For each offer hosted by OnMarket you get easy bidding & payment, free independent research, and a chance to 'meet the management' via exclusive video interviews. Best of all, when you invest in IPOs via OnMarket, any shares you buy can be allocated directly to your State One Stockbroking account so you can manage your portfolio without disruption.

How does it work?

We will display the list of current offers from OnMarket on our website. If you see an offer that you want to invest in then click on the Bid Now button to apply for shares. You will leave State One website and be redirected to our partner's (OnMarket) bidding platform where you will need to sign up with your Holder Identification Number (HIN). If you have already signed up then you will be taken straight to the bidding page for the selected offer.

It is important that you enter your HIN correctly when you set up your login at OnMarket. This will make for a seamless experience if you want your shares to be automatically allocated to your State One account.

Current OnMarket Offers

IPO
Software & Services
$0.50
Size of Offer $5.5-8.5 million
Minimum Bid $2,000.00
Opening Date 19/04/2018
Closing Date 10/05/2018

Update

The Company has advised that they have received firm commitments in excess of the $5.5 million minimum offer size. Applications of over $5,000 may be scaled back more heavily, and the offer may close early.

Introduction

PayGroup Limited (ASX: PYG) (‘the Company’ or ‘the Group’) is a Software as a Service (SaaS) company that provides Payroll and HR outsourcing (‘Business Process Outsourcing’ or ‘BPO’ solutions) and Cloud-based Human Capital Management (HCM Cloud) software to multinational companies in Asia-Pacific markets. Their solutions help medium to large businesses with employees across multiple countries reduce their operational and compliance risk.  

PayGroup’s solutions are delivered to approximately 410 client entities with 31,000 customers across 18 countries. The Group is forecast to generate pro forma revenues of $7.6m and pro forma NPAT of $2.6m for FY18, and has a diverse multinational client base with over 90% client retention rate.

The Company is addressing the Asia Pacific BPO Services market valued at US$20.177 billion, with the Emerging Asia Pacific segment growing at 10.3% (Source: Gartner).

Business Overview

PayGroup generates recurring revenue through its two solution suites.  The BPO solution for clients covers the outsourcing of payroll, other employee benefits, banking, treasury and statutory lodgement services which is complemented by HROnline a proprietary Cloud based HCM software.

BPO Payroll Services

BPO Payroll Services is PayGroup’s core business service and provides outsourced payroll process for its clients’ employees. As part of the service, the Group undertakes a business review to streamline the clients’ payroll processing, workflow and treasury functions. The Group then transacts on behalf of the client in performing its payroll process, disburses employee payroll and lodges all statutory submissions (including taxation, pension & provident funds and other social benefits). These transactions are delivered through the Cloud.

HCM Cloud software

The HCM Cloud product suite supports clients in managing aspects of their employee lifecycle, plus regional and mobile-enabled workflows for critical processes, such as employee and manager self-service, leave management and expense management. The Group will be leveraging the flexibility of its Cloud deployment capabilities to further implement its SaaS HCM suite in additional countries within and outside of the Asia Pacific region.

Sales and marketing

The sales and marketing activities are split into three business units: Cloud software, BPO and Global Marketing and Sales Enablement.

BPO sales are handled by a separate focused sales team in Singapore and Malaysia due to the depth and complexity of BPO Payroll Services and solutions.

Cloud software is sold through a direct sales team, and it is envisaged that strategic relationships will be established for cloud sales via reputable technology integrators, allowing the Company to generate additional revenue at a lower cost of sales.

Global Marketing and Sales Enablement oversees lead generation for both BPO and Cloud sales via traditional and digital marketing and strategic client management programs. The Group envisages adding alliances and/or forming strategic relationships with European and North American BPO and suitable technology providers wanting access to Asia Pacific markets.  

Offer Overview

PayGroup is seeking to raise up to $8.5 million via its IPO and will have a market capitalisation of $25.8 million at maximum subscription. The proceeds of the Offer will be used to:

  • target accelerated business growth through increased sales and marketing by adding sales and marketing resources in Melbourne, Sydney, Singapore, Hong Kong and other key selling markets
  • establish a Sales Enablement division to manage strategic global relationships with US and European HCM and BPO leaders
  • focus on the Group’s technology platforms, including further development of functionality and refreshing customer experience through user interface improvements
  • cover costs associated with an ASX-listed company, and other typical administrative costs

Growth Strategy

The Group’s objective is to achieve continued growth by expanding its services to existing clients and through new client acquisitions and increasing its global reach by targeting new and existing clients which are headquartered outside the Asia Pacific region which have a need for BPO and HCM services within the Asia Pacific markets. Specific opportunities include:

  • Cost efficiencies: Convert existing third party technology (and reduce current fees from in‑licensing to PayAsia) to improve margins and improve client service efficiencies
  • Growing existing client revenue through product offerings: Leverage scalable Cloud platform to extend BPO Payroll Services to more countries without further third party technology reliance and deliver Strategic HR service offerings via to BPO clients globally
  • Partners and alliances expansion: Target and partner with North American and European providers with fast‑growing demand for Cloud multi‑country payroll services in Asia Pacific
  • Earn interest income on treasury functions: Implement treasury functions including earning interest on payroll funds which are deposited into the Group’s account for periods of time
  • Rollout of a Corporate Payroll Debit Card: Provide a payroll debit card to clients and their employees to manage workplace salary and travel/expense claims

Management and Board

PayGroup is led by a board with over 60 years combined experience across the global HCM industry and management team with global expertise within BPO Payroll Services, HR Outsourcing and HCM software. Key personnel include:

  • Ian Basser – Non-Executive Chairman with over 28 years’ experience including Chief Executive Officer and Managing Director of Chandler Macleod Group Limited
  • Mark Samlal – Managing Director and co-founder with 22 years’ experience in leadership roles in Asia Pacific, including CEO of Singapore Stock Exchange listed VicPlas and General Manager and Executive Director of Automatic Data Processing (ADP) in Australia 
  • David Fagan – Non-Executive Director currently a non-Executive Director of Medibank Private Limited and previously the Chief Executive Partner of Clayton Utz
  • Frank Neron-Bancel – Executive Director and Chief Strategy Officer with over 21 years’ experience in global HCM and payroll services with Automatic Data Processing
  • Justin Owen – Chief Financial Officer with over 30 years’ experience in senior finance roles including CFO positions with several ASX listed companies
  • Sachin Goklaney – Chief Operating Officer with over 20 years’ experience in senior finance and operations roles in Singapore and Australia

As set out in Section 7 of the Prospectus, PayGroup Limited is subject to a range of risks, including but not limited to failure to retain existing clients and attract new clients, business operations, disruption and reliance on key software and competitive landscape.

Section 734(6) disclosure: The issuer of the securities is PayGroup Limited ACN 620435038. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​

 

IPO
Financials
$4.00
Size of Offer Uncapped
Minimum Bid $5,000.00
Opening Date 29/03/2018
Closing Date 26/04/2018

Introduction

eInvest Income Generator Fund (Managed Fund) (ASX: EIGA) (the Fund) is a newly established Exchange Traded Management Fund (ETMF) managed by Perennial Investment Management Ltd. The Fund provides investors with the opportunity to generate a tax-effective income stream, paid monthly, through an investment in a diversified portfolio of Australian shares.

The Fund has been established to provide investors with:

  • Attractive, regular, tax-effective income stream.
  • The Fund targets a 7.0% annual pre-tax distribution yield, comprising a 5% cash dividend yield paid in monthly instalments and 2% franking credits.
  • Long-term capital growth.
  • Active management and diversification; and
  • Convenient, low cost listed structure.

The portfolio will consist of a diversified portfolio of quality Australian shares which the Investment Manager believes has the ability to pay an attractive level of dividend income and to grow in capital value over the long term.

Offer Overview

PIML is seeking to raise funds under the initial offer to seed the Fund prior to the units being admitted to trading status on ASX at an Issue Price of $4.00 per Unit. The Fund is seeking to raise a minimum of $10 million and has not set an upper limit on the amount that can be raised under. Investors must apply for a minimum of $5,000 of Units,

Investment objectives & Benchmark

The objective of the Fund is to provide investors with an attractive level of tax effective income, paid via monthly distributions.  The Fund targets a 7.0% annual pre-tax distribution yield, comprising a 5% cash dividend yield paid in monthly instalments and 2% franking credits.

The Fund will aim to achieve this by investing in a diversified portfolio of quality Australian shares listed (or soon to be listed) on the ASX, which PIML believes has the ability to pay an attractive level of dividend income and to grow in value over the long-term.  The portfolio may hold between 20 and 70 stocks, with the typical number held being around 30-40.

It is suited to investors who are seeking a greater level of income than that achieved by term deposits and are able to take full advantage of franking credits and share buybacks.

The Investment Manager

The Fund will be managed by Perennial Value Management Limited, which has a 17 year track record successfully managing clients’ money, including managing income-oriented share portfolios for over 12 years. It has a highly experienced team of 15 investment professionals and currently manages over $5 billion in Australian equities and derivatives.

Perennial Value Management Limited’s Managing Director, John Murray has over 30 years’ experience. Under John’s leadership, funds under management have grown from $40 million in 2000 to current levels and Perennial Value has won a number of prestigious industry awards and accolades.

What is an ETMF?

Exchange Traded Managed Fund's (ETMFs) are quoted on the ASX under the AQUA rules and are traded much like a share. ETMFs can provide you with a convenient way to gain exposure to a wide variety of investments. They can also be used as the building blocks for a well-diversified portfolio. For more information on ETMFs please read the PDS.

As set out in Section 6 of the PDS, eInvest Income Generator Fund is subject to a range of risks, including but not limited to investment objective risks, market stability, concentration risks, liquidity of investments and ASX liquidity.

 

Section 734(6) disclosure: The issuer of the securities is the eInvest Income Generator Fund (Managed Fund) ARSN 623311419. The securities to be issued are Units. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the Product Disclosure Statement (PDS). Investors should consider the PDS in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application process which can be done via the OnMarket electronic application form which will become available by clicking the Invest button above.​

Disclaimer: All information on this section is of a general nature. Before making any investment decision, please seek the relevant advice.

Back to top