May 29, 20184:33pm

Pay Group makes solid stock market debut

Software provider Paygroup has made a strong debut on the Australian share market, adding more than $19 million to its value.

The company handles payroll and human resource services for companies in 18 countries across the Asia-Pacific region, and raised $8.5 million from initial public offering to fund sales and marketing expansion and a technology upgrade.

Paygroup shares were offered at 50 cents each in its IPO, and the stock closed at 87 cents on Tuesday, after 1.5 million shares changed hands.

The 74 per cent gain gives the group a market capitalisation of $44.95 million.

PayGroup had tried to raise $15 million via an IPO in November as it planned a $10 million acquisition of Sri Lankan technology company PeoplesHR.

The IPO was abandoned as Paygroup didn’t believe PeoplesHR’s performance warranted the acquisition price, but retained a technology partnership with the group, a company spokesman said.

In February, Paygroup made a second attempt to float, but that was delayed when the corporate regulator asked for an audited review of the company’s half-year results.

PayGroup subsequently hired accountancy giant Grant Thornton to carry out the audited review.

About PayAsia

PayAsia is a fully owned subsidiary of PayGroup. Headquartered in Melbourne, Australia, PayGroup Limited (ASX: PYG) was recently incorporated as the holding company for PayAsia (collectively PayGroup or Group). The Group is a provider of BPO solutions and Cloud (Software-as-a-Service or SaaS) based Human Capital Management (HCM) software, operating in the Asia Pacific region for multinational companies, and today services over 400 client entities with more than 31,000 client employees across 18 countries. The Group has 111 employees located across 8 countries. Clients are typically medium to large multinational companies with employees in multiple countries in the Asia Pacific region. The Group operates as a trusted partner to perform the outsourced payroll process for the client employees including banking, treasury, lodgement of statutory submissions including taxation, superannuation, pension, provident funds, and other social benefits. Beyond its BPO Payroll Services, the Group’s SaaS HCM software product suite supports clients in managing aspects of their employees’ life cycle, plus regional and mobile-enabled workflows for critical processes (such as employee and manager self-service, leave management and expense management).