Third time lucky as software maker PayGroup makes 74pc gain in ASX debut
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Software maker PayGroup has finally made a successful ASX debut after pulling an attempted float late in 2017 and changing its name.
PayGroup — which operates a Software as a Service (SaaS) payroll and HR platform aimed at Asia-Pacific businesses — closed its first day of trade at a 74 per cent premium to its 50c issue price.
The stock (ASX:PYG) listed at 65c and closed the day at 87c.
It was a good day for ASX floats. Mark Creasy’s Galileo Mining also enjoyed a stellar public debut today.
Cobalt and nickel explorer Galileo (ASX:GAL) almost doubled its issue price to an intraday high of 38c after raising $15 million selling shares at 20c apiece.
The stock finished at 32c — a 60 percent gain on its first day — with about 7.5 million shares changing hands.
June is a big month for listings with at least 11 companies joining the ASX.
The company had been about to acquire a tech play called PeoplesHR — hence the name — but it didn’t hit performance targets so they pulled the deal and the IPO, managing director Mark Samlal told earlier this month Stockhead.
They halved the IPO figure, since it was no longer needed to fund a takeover, and tried again in February.
But then the corporate watchdog demanded extra information. This time is the lucky third.
Mr Samlal started the business in Singapore in 2006 as a “side hustle” for his wife Michele Samantha Samlal to manage.
Mrs Samlal will own 48 per cent of the listed company as a proxy for her husband. She also owns half of the office space PayGroup leases.
PayGroup says it now has 31,000 users across 400 clients in 18 countries.
It will use the cash to ramp up sales and marketing, making new hires in Melbourne, Sydney, Singapore and Hong Kong.
Some of the money will go towards development of the software’s user interface.