It looks like things aren’t going as planned in the IPO arenas these days (*cough* WeWork).
On 7 October 2019, Singapore-based proptech firm PropertyGuru announced plans to launch their IPO in Australia.
The company said they had lodged a prospectus with the Australian Securities and Investment Commission to list on the Australian Securities Exchange (“ASX”), with an indicative price range of A$3.70 (S$3.45) to A$4.50 (S$4.20) per share.
The offer could have raised them around A$363 million (S$338 million).
However, a mere two weeks later, PropertyGuru now says the plans are scrapped.
PropertyGuru Limited (“PropertyGuru” or the “Company”) today announces that it has decided not to proceed with its proposed initial public offering (“IPO”) on the Australian Securities Exchange (“ASX”).
While the firm says it received “strong investor support from a number of leading global and Australian investors”, their decision to withdraw was “due to uncertainty in the current IPO market”.
The company assures that their outlook remains positive, and that they do not require new funds to sustain their current business operations at this time.
They previously announced that they became EBITDA and free cash flow positive in 2018.
It was also revealed in PropertyGuru’s prospectus that the company raked in US$28.6 million in revenue in the first half of 2019, compared to US$18.6 million during the same period in 2018.
This gave the firm an operating profit of US$1.7 million for H1 2019, but they still carried a net loss.
Said PropertyGuru Chairman Olivier Lim, “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.”
Both major shareholders, TPG and KKR, representing aggregate ownership of 58%, were not seeking to sell any shares at IPO and had entered into voluntary escrow arrangements until February 2021.
Featured Image Credit: PropertyGuru