PropertyGuru, a Singapore-based Southeast Asian property platform, announced today that it has decided to cancel its proposed initial public offering (IPO) on the Australian Securities Exchange (ASX).
“Despite strong engagement throughout the process with prospective investors, the Board and existing shareholders have determined not to proceed with the offer. This decision took into account current IPO market sentiment,” PropertyGuru Chairman Olivier Lim said.
PropertyGuru had offered shares at the lower end of a A$3.70 to A$4.50 indicated range, which would have raised up to A$380.2 million (US$260 million). The firm, owned by private equity firms KKR and TPG Capital, decided to withdraw the IPO due to uncertainty in the current IPO market.
Lim, however, assured that PropertyGuru continues to have the support of its existing shareholders and access to private capital markets should it seeks new funds to finance its growth opportunities.
“Should the Company seek new funds to support our identified growth opportunities, we have a committed existing shareholder base as well as access to private capital markets,” he stressed.
Founded in 2006 by Jani Rautiainen and Steve Melhuish, PropertyGuru operates rental and sale listing sites. It is present in five countries across Southeast Asia – Singapore, Vietnam, Malaysia, Thailand, and Indonesia. According to its prospectus, the firm has over 23 million property seekers on its platforms every month.
“Over the last several years, we have built a team and business which has been committed to building transparency and efficiency in the Southeast Asian real estate markets,” said PropertyGuru CEO Hari V. Krishnan.
“Our team remains committed to pursuing our mission, given the size of the opportunity available to us, and our track record of sustainable and profitable growth,” he added.
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.