PropertyGuru shelves IPO, citing market uncertainty

As market tumbles, IPOs stumbles.

PropertyGuru CEO Hari Krishnan / Photo credit: PropertyGuru

Singapore-based PropertyGuru has decided not to proceed with its planned initial public offering on the Australian Securities Exchange.

A statement from the company said that “despite strong investor support from a number of leading global and Australian investors, the board of PropertyGuru has decided to withdraw the IPO due to uncertainty in the current IPO market.”

An earlier media report states that PropertyGuru was offering shares on the lower end of the A$3.70 to 4.50 (USD 2.53 to 3.08) indicated range. The report, however, adds that IPO lead managers UBS and Credit Suisse had sent out messages to investors noting that institutional demand for the shares was oversubscribed.

PropertyGuru is a leading property portal in Southeast Asia. It competes with Australia-headquartered Rea Group, which owns iProperty, a collection of property marketplaces in Asia Pacific.

According to PropertyGuru’s prospectus, it made USD 28.6 million in the first half of 2019, up from USD 18.6 million in the same period last year. It was profitable—on an EBITDA basis—to the tune of US$3.3 million in 2018. While it had a net loss in the first half of this year, it saw an operating profit of USD 1.7 million.

To bolster its Vietnamese business, PropertyGuru fully acquired Batdongsan in 2018. With that acquisition, it claims to be the market leader in Vietnam. The country contributed to the group’s overall revenue growth in the past year.

This article first appeared on Tech in Asia.