- Has already submitted IPO application to CSE to list 20% stake to raise Rs.700mn
- Eyes acquisitions in APAC region and Africa following IPO
Sri Lanka’s market leader in the Human Capital Management (HCM) related software industry hSenid Business Solutions Limited is gearing to raise up to Rs.700 million offering 20 percent stake in the company through an initial public offering (IPO) while becoming the first enterprise software company to be listed on the Colombo Stock Exchange (CSE).
With over 24 years of operations, hSenid is considered as a pioneer in the HCM related software industry specialising in emerging markets, and it currently dominates the local market with an installed base market share of over 80 percent.
The company has already submitted an IPO application to list its shares on the CSE. NDB Investment Bank Limited (NDBIB) and CT CLSA Capital (Pvt) Limited have been appointed as joint managers and financial managers to the issue.
The company’s key product ‘PeoplesHR’ has been one of the trusted names in the industry capturing all HR needs with on-premise and cloud-based SaaS HR solutions, including a marketplace built for HR professionals, tracking and security solutions and collaboration tools for employees.
Currently, PeoplesHR Cloud and PeoplesHR on-premise remain as key products of the company contributing 39 percent and 29 percent its revenue. In addition, hSenid HRO and PeoplesHR Cloud are also among core products of the company.
Moving forward, hSenid set its sights on a set of new products catering towards next gen requirements focused on Artificial Intelligence, Data Analytics, and Robotics etc. PeoplesHR Marketplace and Enterprise Social Network (ESN), Juraa, are such products developed by its R&D department.
Following the proposed IPO, hSenid plans to utilise all proceeds from the proposed IPO to fund its market penetration plan, which includes further enhancement of PeoplesHR & Marketplace, development of global partner network and building up a war-chest for acquisitions in APAC region and Africa.
Backed by its over 1,300 global coporate clientele and over one million user-bases, the company has already secured 75 percent of the expected Rs.1.1 billion in FY2022. Its defensive revenue model includes over 90 percent US$-linked revenue and over 48 percent recurring revenue.
Moving forward, the revenue contribution from foreign markets is expected to increase up to 60 percent by 2026FY from 49 percent in 2021FY.
Meanwhile, hSenid ‘s existing shareholders have agreed towards a voluntary lock-in period of six months and promoters and employees have shown their commitment towards a one-year voluntary lock-in.
At present, the promoter has 44 percent ownership stake in the firm followed by 31 percent stake by high net worth individuals and family offices and 21 percent stake by private equity and wealth funds. In addition, employees have a 4 percent stake in the firm through the employee stock ownership plan (ESOP). (NF)