Info-Tech Systems has lodged its preliminary prospectus with the Monetary Authority of Singapore, in relation to its proposed IPO on the mainboard of the Singapore Exchange(SGX).
Oversea-Chinese Banking Corporation (OCBC) is the sole issue manager and global coordinator for this proposed IPO. OCBC and CGS International Securities are joint bookrunners and underwriters for this IPO.
If this issue goes ahead, it will be the second SGX IPO this year, after Vin's Holdings.
Info-Tech is a cloud-based “software as a service” (SaaS) human resource management software (HRMS) designed for SMEs. It is headquartered in Singapore, with operations in Singapore, Malaysia, Hong Kong and India.
The company says that its HRMS is used by over 23,000 organisations spanning various industries and has more than 850,000 active users.
“Our HRMS helps organisations streamline their processes, improves efficiency and enhances
workforce management. We develop and sell a range of modular software products as a one-stop solution to efficiently manage HR-related operations,” the prospectus reads.
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Info-Tech’s HRMS covers nine modules, namely HR Software, Time Attendance, Payroll, Leave Management, Claims Management, E-Scheduling Software, Performance Appraisal, Project Costing and Applicant Tracking System.
In Singapore, Info-Tech says that it is the leading provider of cloud-based HR and accounting software solutions with revenue of $43.7 million in the year ended Dec 31, 2024 and a market share of approximately 9.8% in FY2024, according to Converging Knowledge.
Since the launch of its HRMS in 2016, revenue has grown from $28.3 million in the year ended Dec 31, 2022 to $34.4 million in the year ended Dec 31, 2024.
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From FY2022 to FY2024, Info-Tech’s subscription revenue derived from outside Singapore grew 31.7% CAGR. In Malaysia, subscription revenue for HRMS and Info-Tech Accounting Software achieved a CAGR of 28.9% compared to the CAGR of the SME-focused cloud-based HR and accounting software market of 10.9% for Malaysia during the same period as estimated by Converging Knowledge.
Meanwhile, subscription revenue for HRMS and Info-Tech Accounting Software revenue in other countries, achieved a CAGR of 42.1% from FY2022 to FY2024, compared to the CAGR of the SME-focused cloud-based HR and accounting software market of 15.5% and 10.6% for Hong Kong and India, respectively, during the same period as estimated by Converging Knowledge.
For the years ended Dec 31, 2022, 2023 and 2024, the group’s total revenue was $30.8 million, $38.1 million and $43.7 million, respectively. In the same period, Info-Tech’s profit for the year was $7.2 million, $10.5 million and $12.3 million, respectively.
Profit before tax increased from $9.4 million in the year ended Dec 31, 2022 to $13.0 million in the year ended Dec 31, 2023, and increased further to $14.9 million in the year ended Dec 31, 2024.
Info-Tech was incorporated in Singapore on June 27, 2007, founded by executive chairman Lee Kim HengPeter and CEO Setin Subramanian Dilip Babu. Both Lee and Babu have experience working in the software solutions industry for over 25 years.
Share capital and shareholders
The percentage of ownership of the company is based on 225 million shares outstanding as at the latest practicable date and currently undefined shares outstanding immediately after completion of the offering and the issuance and sale of cornerstone shares.
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Lee and Babu currently both own 47.5% of the total number of shares in the company each, and Yeoh Sin Yee owns 5%.
At the same time as but separate from the offering, each cornerstone investor has entered into a cornerstone agreement with the company and or Lee to subscribe or purchase an aggregate 41.144 million cornerstone shares at the offering price.
The cornerstone investors are Asdew Acquisitions, Avanda Investment Management, Dymon Asia Multi-Strategy Investment Master Fund (DAMSIMF), Ginkgo-AGT Global Growth Fund, Lion Global Investors, Maybank Asset Management, Nikko Asset Management Asia, Qilin Wealth Fund and Splendid Asia Macro Fund.
Avanda Investments is the fund of former Singapore presidential candidate Ng Kok Song, and Qilin is the family office of Lim Chap Huat, executive chairman of Soilbuild.
