SINGAPORE (June 8): Local recruitment firm HRnetGroup has lodged a prospectus for an initial public offering (IPO) to raise $174.1 million for 193.4 million shares, at an offer price of 90 cents per share.

About 85.7 million shares will be offered under the placement tranche while 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.

Another 103.9 million shares have been taken up by cornerstone investors including Aberdeen Asset Management Asia, Credit Suisse AG’s Singapore and Hong Kong branches, FIL Investment Management (Hong Kong), and TechnoPro Holdings.

The company says it intends to use the proceeds raised for business expansion or potential opportunistic acquisitions.

In FY16, revenue came in at $365 million while net profit came in at $48.4 million.

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.

The public offer opens at 8 pm tonight and will close at 12noon on June 14.

Its shares will start trading at 9am onn June 16.