REAL estate portal PropertyGuru has decided not to proceed with its proposed initial public offering (IPO) on the Australia Securities Exchange (ASX).
The withdrawal is due to uncertainty in the current IPO market, despite “strong investor support” from a number of global and Australian investors, PropertyGuru’s board announced on Wednesday.
Just two weeks ago, the South-east Asian property technology firm had lodged its IPO prospectus with an indicative price range of A$3.70 to A$4.50 per share. A successful market debut would have raised A$362.6 million (S$338.1 million), if the final price were at the midpoint of the range.
Reuters reported on Tuesday that investor support was coming in at the lower end of the price range as PropertyGuru took orders for the offering. A book message sent to investors by the deal's joint lead managers also stated that institutional demand was oversubscribed.
The company said on Wednesday that it 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,” it added.
PropertyGuru said it continues to have the support of its existing shareholders. This is highlighted by the fact that both major shareholders – TPG and KKR, which together hold a 58 per cent stake – were not seeking to sell any shares in the IPO and had entered into voluntary escrow arrangements until February 2021, said the company.
PropertyGuru chairman Olivier Lim said: “This decision (to withdraw the IPO) 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,” Mr Lim added.