PropertyGuru to raise $363m for ASX debut

Photo Jit Pin Lim
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ASIA’s largest online real estate classified portal PropertyGuru is set to list in Australia, seeking to raise $363 million.

PropertyGuru, which is backed by Texan-based private equity firm TPG Capital and New York-based KKR, has filed its prospectus with an indicative price range of $3.70 to $4.50 each.

The company is set to start trading on October 25 and will have an indicative market value of up to $1.36 billion.

Headquartered in Kuala Lumpur, PropertyGuru operates in 14 markets across Asia, including Malaysia, Singapore, Thailand, Indonesia and Vietnam.

It is used by 23 million property seekers, boasting a 60% market share in its core markets.

CEO Hari V Krishnan said part of the proceeds from the offering will be used to pursue its growth strategy, which includes the potential expansion into a number of direct adjacencies, including providing property seekers with convenient access to mortgage financing through an online mortgage marketplace and developing data offerings.

“We have established a strong market position in the Southeast Asian property ecosystem. Much of our success is the result of our strategic significant investment in technology. We have invested heavily to build what is today an integrated and differentiated technology platform, which caters to the opportunities in our core markets,” Krishnan said.

PropertyGuru’s pro forma revenue has grown at a 26% compound annual growth rate over the last three years. 2018 also marked the first year PropertyGuru became both EBITDA and free cash flow positive.

Chairman Olivier Lim said the market opportunity for online property advertising continues to be underpinned by a number of key macroeconomic and other trends including strong population growth, urbanisation, increasing penetration of the internet within the population, increased access to mobile phones, and in particular smartphone penetration, as well as rising wealth levels which has seen the expansion of the middle classes – a key driver of housing demand.

“We expect these trends to shift property advertising away from print and other offline channels in our core markets to online, as property seekers increasingly use digital channels to conduct their property searches.”

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