APM makes a muted debut on the ASX

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APM makes a muted debut on the ASX

 APM makes a muted debut on the ASX
Image source: ImageFlow, Shutterstock.com

Highlights

  • APM shares opened on the ASX at a discount of 1.4% to AU$3.5, compared to the offer price of AU$3.55.
  • The company successfully raised AU$982.1 million via issuance of 277.8 million shares.
  • After going public, the total number of shares on issue has increased to 917.3 million.

On 12 November 2021, Australian recruiting firm APM Human Services International Limited (ASX:APM) made its debut on the ASX. APM’s shares opened on the ASX at a discount of 1.4% to AU$3.5 compared to the offer price of AU$3.55.

Stock market chart

Image Source: © Embe2006 | Megapixl.com

As of 12:40 PM AEDT, the shares were hovering even lower, around AU$3.36, after making a low of AU$3.32 as investors flocked to an exit after a lacklustre listing. The total traded volume on the ASX so far has been reported at around 7.57 million shares.     

The company successfully raised AU$982.1 million via an issuance of 277.8 million shares at an issue price of AU$3.55 per share. After going public, the total number of shares on issue has increased to 917.3 million.

What does APM Human Services International do?

APM is a recruiting company, founded in 1994, which helps find a sustainable employment opportunity for the workforce across all ages, including elders, people with disability or chronic illness, veterans, sole parents, etc. The operations span over 10 countries, including Australia, New Zealand, the US, Germany, etc., having more than 800 sites and 7,000 team members.

It helps to seek employment opportunities through its employment consultants who provide job search assistance, interview preparation and also post-placement support. APM’s multidisciplinary teams also offer education and training programs required to become a potential candidate for a job.

Read More: IPO alert: Three stocks making ASX debut in November

Who are APM’s key customers?

APM has a vast user base of people with disability/chronic illness, single parents, aged workers etc., who are the beneficiaries of its programs and services. However, these services are funded via contracts, licences, grants, and individual fee for service arrangements.

International government agencies and departments are the main sources of funding for the company. For eg. in Australia, it’s the Disability Employment Services, which is funded by the Australian Government’s Department of Social Services, while the Local Area Coordination (LAC) services is funded by the National Disability Insurance Agency (NDIA).

In the UK, the Commissioned Rehabilitative Services (CRS) is backed by the Ministry of Justice, while the Restart Scheme is being taken care of by the Department for Work and Pensions.

Continued trend of increasing growth

For the three consecutive years, the company showed a continuing trend of increasing revenue. In FY21, it clocked a revenue of $1.01 billion, up from $796.7 million in previous year and $535.7 million in FY19.

From a net loss of $8.7 million in FY19, the company has grown exponentially to clock a net profit of $77.8 million, with the management expecting to rake up this figure to $103.2 million in FY22.

Read More: Ventia IPO: Why is it making headlines before the pitch date?

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