APM Human Services (ASX:APM) slips on debut

• APM Human Services International (APM) becomes the latest $1 billion-plus to list on the ASX today though shares slumped by as much as five per cent
• By the end of the trading day, shares in APM Human Services fell just over six per cent to $3.33, down from its $3.55 listing price
• Perth-based APM Human Services was founded in 1994 and provides human services such as employment matching, vocational education, and occupational injury prevention
• APM reported $1.03 billion in revenue and a net profit after tax and amortisation of $48.9 million in the previous fiscal year
• Shares rounded off the day of trading down 6.2 per cent to $3.33

APM Human Services International (APM) becomes the latest $1 billion-plus to list on the ASX today though shares slumped by as much as five per cent.

By the end of the trading day, shares in APM Human Services fell just over six per cent to $3.33, down from its $3.55 listing price, but leaving the company worth more than $3 billion.

Perth-based APM Human Services was founded in 1994 and provides human services such as employment matching, vocational education, and occupational injury prevention.

Per the prospectus, APM collected $982 million in the IPO to pay off debts and provide existing investors – including 80 current employees – with a liquid market to sell their shares. The company allowed over 400 of its over 7000 employees to become shareholders.

APM reported $1.03 billion in revenue and a net profit after tax and amortisation of $48.9 million in the previous fiscal year.

Founder and Executive Chair Megan Wynne said in the prospectus that she, and her associates, owned 34.2 per cent of shares on completion of the offer. Before the float, this share was valued at $1.1 billion.

“For FY22, the directors forecast that APM will generate pro forma revenue of $1.3 billion, pro forma EBITDA of $295 million and pro forma NPATA of $155 million, representing growth of 31%, 26% and 21% respectively over FY21-FY22,” Ms Wynne said in the prospectus.

Ms Wynne said following the IPO the company will continue to grow globally and focus on supporting more clients each year.

APM CEO Michael Anghi said APM has a history of growth, both organically and through acquisitions and investments.

“Our team members operate from more than 800 locations globally ensuring we have local team members, operating in local markets, supporting local clients and partnering with local community, corporate and Government stakeholders to deliver positive and lasting impacts.”

Shares rounded off the day of trading down 6.2 per cent to $3.33.