Source: Beast Finance Author: Beast Finance
Monster Finance has learned that Galaxy Payroll Group, a Hong Kong-based human resources service provider, has recently submitted a prospectus to the US Securities and Exchange Commission (SEC) to apply for IPO listing on Nasdaq, with the stock code (GLXG) , Kalishi Talent plans to issue 2.5 million common shares at a price of US$5 per share through this Nasdaq IPO listing, raising US$125 million in funds.
Company business
Based in Hong Kong, Kalishi Talents was established in 2013 and operates through its wholly-owned subsidiaries. It is a provider of payroll outsourcing, employment, consulting and market research services.
The company serves clients in the retail and trading, industrial, IT, financial, professional services, professional institutions and education, and healthcare industries.
The management of Kalishi Talent is led by Co-Founder, Chairman and CEO Mr. Wai Hong Lao, who has been with the company since its inception and before that he was the manager of TAKA Corporate Services and various companies in the United States , focusing on software development.
As of December 31, 2022, Kalishi Talent has received US$15.1 million in investment from investors including company executives and other shareholder entities.
Industry Overview
According to the 2022 market research report by Research and Markets, the global payroll outsourcing industry has a market size of US$23.3 billion in 2020 and is expected to reach US$31.8 billion by 2027.
This implies a forecast CAGR of 4.5% for the industry from 2020 to 2027.
The main driver of this expected growth is the growing geographic scope of the company, thereby requiring specialized knowledge that will allow management to focus on its core areas of interest.
Also, there is an increasing trend of bundling HR services and process automation to provide more attractive offerings for certain customer segments.
Competitors of Jialishi Talent in this industry include:
(1) Accenture (ACN)
(2) ADP Group Companies
(3) Deloitte Touche Tohmatsu
(4) Hewlett Packard Enterprise Company
(5) IBM
(6) Intuit (INTU) Financial
Information
as follows:
(1) Total income: The total income of Kalishi talents as of June 30, 2021, June 30, 2022, and December 31, 2022 are respectively: US$4,522,386, US$5,978,576, and US$1,999,164.
(2) Gross profit (loss): The gross profit of Jiali Shi Talents as of June 30, 2021, June 30, 2022, and December 31, 2022 are: US$3,030,436, US$4,488,068, and US$1,155,985, respectively.
(3) Gross profit margin: The gross profit margins of Jialishi Talent as of June 30, 2021, June 30, 2022, and December 31, 2022 are: 67.01%, 75.07%, and 57.82%, respectively.
(4) Operating profit (loss): The operating profit of Jiali Shi Talents as of June 30, 2021, June 30, 2022, and December 31, 2022 are: US$1,541,609, US$3,450,436, and US$537,539, respectively.
(5) Comprehensive income (loss): The comprehensive income of Jiali Shi Talents as of June 30, 2021, June 30, 2022 and December 31, 2022 are: US$1,283,821, US$2,873,141, and US$434,428, respectively.
(6) Operating cash flow: The comprehensive income of Jiali Shi Talents as of June 30, 2021, June 30, 2022, and December 31, 2022 are: US$935,509, US$1,529,090, and US$1,032,348, respectively.
As of December 31, 2022, Kalishi had $1.5 million in cash and $1.8 million in total liabilities.
For the twelve months ended December 31, 2022, Kalishi Talent's free cash flow was $2.5 million.
IPO Details
According to the IPO prospectus, Boldbeast Finance has organized the IPO situation of Kalishi talents as follows:
Jialishi Talent plans to issue 2.5 million common shares at a price of US$5 per share through this Nasdaq IPO listing, raising US$125 million in funds.
No existing shareholders have expressed interest in purchasing Garysh Talent shares at the IPO price.
If Kalishi Talent is successfully listed on the Nasdaq IPO, the market value of the company at the time of IPO will reach 80.3 million US dollars, excluding the impact of the over-allotment option of the underwriters.
Kali Shi Talent's current outstanding-to-share ratio (excluding underwriter options) is about 13.51%, and a figure below 10% is generally considered a "low float" stock, so Kali Shi Talent stock may be subject to significant price fluctuations.
The company currently does not have an equity compensation incentive plan.
Regarding the pending legal action, management said it was not involved in any "material claims, litigation, arbitration or administrative proceedings." '
Karishi Talent currently plans to pay no dividends and retain future earnings to reinvest in the company's growth and working capital needs.
The intermediary agency
Mengshou Finance learned from the IPO prospectus of Jialishi Talent that Prime Number Capital is the sole underwriter of Jialishi’s IPO listing on Nasdaq. In the past 12 months, the company led four IPOs have returned an average of 4.9% since their IPO. This is mid-range among all major underwriters.