Acquisitions and expansion on cards as Pulse goes public

MALAYSIA-- Shares in Pulse Group commenced trading on the UK's Plus Markets today – paving the way for expansion for the research process outsourcing firm.

CEO Bob Chua said the company would use the proceeds of the listing to build out its research panel offer in Middle East and Asia Pacific countries, adding specialist panels of business executives, doctors and IT experts among others.

New offices in Asia Pacific and the west coast of the US are also on the cards, said Chua, as are new voice-over-IP CATI facilities. The company already has bases in Kuala Lumpur, Sydney, London, New York and New Delhi.

Another advantage of the listing is easier access to capital markets, allowing Pulse to chase acquisition opportunities and to offer publicly traded shares as part of the consideration of any deal. A number of potential targets have already been identified, according to the company's prospectus.

Chua said: “The initial public offering (IPO) signifies an integral stage of our growth, as it allows us to accelerate all facets of our business and unleash our full potential.”

Pulse has been preparing for an IPO since 2005, and made an attempt to obtain a quotation of its ordinary shares on the London Stock Exchange's Alternative Investment Market last year, but this was later aborted.

Despite the uncertain global economic environment leading to depressed market conditions, Chua insisted now was the right time for Pulse to go public – with growth still “strong” in the Asia region, and outsourcing firms ideally poised to capitalise on the growing pressure on companies to keep costs down.

Chua and co-founder Kym Wong own 41.27% and 17.69% of the company respectively, with 30.25% held by Japan Asia Investment Corp, which invested an undisclosed sum in the company back in February 2007.

The remaining 10.79% of shares are owned by another investment company, Evolve, which provided Pulse with a loan of £400,000 – now converted into shares. Evolve also subscribed for 1,000,000 new ordinary shares at a placing price of 10p per share. Taken together, Pulse has raised £500,000 in new funding – with proceeds after costs estimated to be £180,000.

Pulse has 91 million shares in issue following its admission to the Plus Markets, which – at the placing price – gives the firm a market capitalisation of £9.16m.

Author: Brian Tarran