PropertyGuru Pte, a Singapore-based provider of online classified real estate, the plan for a raise as much as A $ 380.2 million ($ 257 million) and list on the Australian stock exchange.
The indicative share price range is between A $ 3.70 and A $ 4.50, giving a market capitalization at the top end of approximately A $ 1.36 billion, the company 7 Oct prospectus shows. A build book to determine the final price will be held later this month and is expected to begin trading in October 25
PropertyGuru operates classifieds market in Singapore, Vietnam, Malaysia, Thailand and Indonesia and estimated consumer market share of 60%. Pro-forma revenues have grown at a compound annual rate of 26% over the last three years, and last year, the company became positive Ebitda and free cash flow, according to the sales document.
“The market opportunity for online advertising properties in our core markets is supported by a number of macroeconomic and other key trends,” said Chairman Olivier Lim. “This includes a strong population growth, urbanization, increasing Internet penetration in the population, increased access to mobile phones, and the penetration of smartphones in particular, as well as rising levels of wealth.”
PropertyGuru was founded in 2007 by Steve Melhuish and Jani Rautiainen.
The company has raised more than S $ 400 million ($ 290 million) to date over four rounds involving institutional investors such as TPG Capital and KKR & Co.
Melhuish and Rautiainen together own approximately 11.6% of the company, or about 30.45 million shares. As part of the IPO, they will sell the stock fell 7.2%. If the sale price at the top end, that means a combined windfall of A $ 37.3 million.
The results of the public offering will be used to pursue the company’s growth strategy, including expansion into the mortgage-finance services through online mortgage market.
Some risk factors cited by PropertyGuru in the prospectus includes a limited number of properties online ad spending in Southeast Asia and interference from competitors.
“Advertising spending online properties in our core markets ranged from 4% in Indonesia to 36% in Singapore in 2018, which is significantly below developed markets such as Australia and the UK at 76% and 75%, respectively,” said the document ,
He added that “large companies with a strong brand awareness in international markets or global search engines and social media sites, such as Facebook or Google may decide to enter the property market and start advertising.”
PropertyGuru Australia’s planned listing comes about two years from the debut APAC Realty Ltd in Singapore. Stock APAC Realty, the owner of the property broker ERA Singapore, up 12.4% this year after slumping 49% in 2018.
Paya Lebar Quarter, 1 Paya Lebar Link, #12-01/04, Singapore 408533.
Phone: +65 6238 5971, (+65) 6534 9544 www.propertyguru.com.sg