NY-listed PropertyGuru to be delisted in US$1.1 billion acquisition by EQT Private Capital Asia
Deal comes two years after IPO in 2022; acquisition expected to be completed in the last quarter of 2024 or first quarter of 2025
NEW York-listed PropertyGuru Group, which started as an online property listings portal, will be acquired by investment firm EQT Private Capital Asia for US$1.1 billion and taken private, the company said on Friday (Aug 16).
Under the all-cash deal, ordinary shares of the company will be cancelled and converted automatically into the right to receive US$6.70 per share – a 7 per cent premium to PropertyGuru’s last closing price at US$6.26 on Aug 15.
The merger price represents a 52 per cent premium to PropertyGuru’s closing share price on May 21, 2024, the last unaffected trading day prior to media speculation regarding a potential transaction, the company said.
The deal comes two years after PropertyGuru made its debut on the New York Stock Exchange at a share price of US$8.61 per share, in March 2022. Since listing, the stock has slipped, hitting a low of US$3.17 in February 2024 before recovering to reach US$4.83 in May after news of a possible buyout.
Private equity groups KKR and TPG, which hold a combined 56 per cent of PropertyGuru’s shares, have undertaken to sell their stake in the company in support of the merger.
In May, it was reported that the two investors were exploring a buyout of the company.
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The proposed merger price is also a 75 per cent and 86 per cent premium to PropertyGuru’s 30-day and 90-day volume-weighted average share price, respectively, for the period ending May 21, 2024.
The group listed via a business combination with special-purpose acquisition company Bridgetown 2, which was backed by billionaires Peter Thiel and Richard Li. At the time of the business combination, PropertyGuru had an equity value of US$1.6 billion.
The transaction is expected to be completed in the last quarter of 2024 or first quarter of 2025, subject to closing conditions including shareholder and regulatory approvals.
Upon completion, PropertyGuru’s shares will no longer trade on the New York Stock Exchange; the group will become a private company. PropertyGuru’s headquarters will remain in Singapore, the company said.
In response to queries from The Business Times, Hari Krishnan, chief executive officer and managing director of PropertyGuru Group, said: “Going private allows PropertyGuru to focus on long-term strategies, innovate more freely, and execute growth plans without the pressures of public-market expectations.
“EQT was chosen for its deep expertise in scaling companies and its alignment with PropertyGuru’s vision for long-term growth and innovation in South-east Asia.”
In a press release issued on Friday (Aug 16), Janice Leow, head of EQT Private Capital South-east Asia, said: “We believe our offer provides shareholders with compelling value and certainty, while strategically positioning PropertyGuru to fully harness its long-term growth potential.
“With EQT’s significant experience in the technology, online classifieds and marketplace sectors, we aim to further strengthen PropertyGuru’s platform, driving enhanced innovation and deeper engagement with its consumers, customers and stakeholders.”
According to a Reuters report, Australian real estate firm REA Group, which holds a stake of “more than 17 per cent stake” in PropertyGuru, said it expects to book around A$286 million (S$250 million) in proceeds from the sale.
When asked whether there would leadership changes in the pipeline, PropertyGuru told BT the leadership team is committed to driving the company’s vision, with the support of EQT to potentially enhance its strategic capabilities.
The group added that it remains committed to the talent development of its staff and is focused on ensuring that the ownership transition is completed smoothly. PropertyGuru currently has over 1,500 employees across the region.
In its first quarter ended March, PropertyGuru posted a net loss of S$6.3 million, narrowing from the S$10.2 million net loss in the same period the year before.
Revenue for the quarter stood at S$36.5 million, 11.9 per cent higher than the S$32.6 million the year before, on the back of strong growth in the Singapore marketplace segment.
In February, the group announced it was laying off 79 employees, or 5 per cent of its workforce, under a strategic review that called for the closing of non-profitable units amid volatile market conditions and changing customer needs.
PropertyGuru was founded in 2007 by Steve Melhuish and Jani Rautiainen. It started out as a property-listings portal, and evolved to include a mortgage marketplace, home service platform and enterprise business solutions.
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