SEA Proptech Firm PropertyGuru Eyes $245m in Australian IPO

PropertyGuru, one of the leading property technology companies in Southeast Asia, has filed to raise about A$363 million (US$245 million) in an initial public offering on the Australian Securities Exchange (ASX).

In a statement Monday, PropertyGuru said it has lodged a prospectus with the ASX to offer shares at an indicative price range of A$3.70 to A$4.50 apiece. The filing will be Australia’s largest offering this year, to overtake Irish insurance software firm Fineos, which listed in the country in August after a A$190-million IPO.

The filing comes at a time when PropertyGuru’s pro forma revenue has grown at a 26-percent compound annual growth rate over the last three years. The company, however, has not disclosed the number of shares that it intends to offer to the public.

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Chief Executive Officer Hari V Krishnan said the proceeds from the offering will be used to pursue the company’s growth strategy, which includes potential expansion into a number of direct adjacencies.

Singapore-based PropertyGuru operates digital classifieds marketplaces in five countries across Southeast Asia – Singapore, Vietnam, Malaysia, Thailand, and Indonesia. The group claims to have 60 percent consumer market share across its core markets.

“The market opportunity for online property advertising in our Core Markets is underpinned by a number of key macroeconomic and other trends,” according to Group Chairman Olivier Lim.

These trends include strong population growth, urbanisation, increasing penetration of the internet within the population, increased access to mobile phones, and in particular smartphone penetration, as well as rising wealth levels which has seen the expansion of the middle classes – a key driver of housing demand.

PropertyGuru is backed by Indonesian media company Emtek and venture capital firm Square Peg Capital. Last year, the company received a S$200 million ($145 million) investment from global private equity firm KKR.

Krishnan said PropertyGuru was founded with the goal of bringing access and transparency to the real estate sector.

“We have achieved this goal through the continual evolution of our technology and digital solutions,” he added.

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