SINGAPORE: Southeast Asian online realtor PropertyGuru announced on Wednesday (Oct 23) that it has decided not to proceed with its proposed initial public offering (IPO) on the Australian Securities Exchange (ASX).
Its IPO would have raised about A$380.2 million (S$355 million).
In a media release, the Singapore-based company cited "uncertainty in the current IPO market" as the reason for withdrawing its IPO, despite strong investor support from a number of leading global and Australian investors.
“Despite strong engagement throughout the process with prospective investors, the Board and existing shareholders have determined not to proceed with the offer," said PropertyGuru chairman Olivier Lim.
"This decision took into account current IPO market sentiment. 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.”
According to the media release, PropertyGuru continues to have the support of its existing shareholders. It said that both major shareholders, TPG and KKR, representing aggregate ownership of 58 per cent, were not seeking to sell any shares at IPO, and had entered into voluntary escrow arrangements until February 2021.
"The company remains positive in its outlook for the performance of the business. Importantly, the company does not require new funds to be raised to fund its current business operations," said PropertyGuru.
According to its prospectus filed with the Australian Securities and Investment Commission on Oct 7, PropertyGuru's IPO was set at an indicative price range of A$3.70 to A$4.50 apiece.
PropertyGuru had Credit Suisse, KKR Capital Markets, TPG Capital BD and UBS as the joint lead managers to the IPO.
PropertyGuru CEO Hari V Krishnan said: "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.
"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."