PropNex Realty the largest home-grown realty agency in Singapore gearing up for its IPO (Initial Public Offering). The agency is planning to raise S$40 million from the proposed IPO.
The agency is looking for a market capitalization in tune of S$250 million through this IPO as per a news report that appeared on Bloomberg last weekend.
Realty trackers in Singapore have been talking about this IPO for quite a while now and it would be a major step for the agency.
As per the current market estimates the listed entity would help the agency take its market capitalization just below the S$300 million mark.
Given the regulations they will need to offer minimum of 25% post-invitation equity in the hands of public by the end of the IPO process.
This IPO would also include PropNex International business which is the agency’s marketing arm where interestingly JLL another of Singapore’s leading property consultants has 20% stake.
Though PROPNEX hasn’t officially declared the date for the launch of the IPO market analysts feel that the same could happen within the next few days as the agency is targeting getting listed by the end of this month.
There have been speculations on the listing price but a broad consensus has emerged for a price range between 62 and 68 Singapore cents per share.
This isn’t the first time that PropNex has planned for an IPO as it had done so in 2010-2011 but the move was put on the backburner when the property market started cooling down and the company feared devaluation. Interestingly it was also the time when it had hired KPMG as its auditors which is one of the Big 4 audit firms in Singapore.
PropNex Realty is now the largest property broking agency in Singapore with a large sales team where the head count is in the tune of 7200 agents.
Its merger with Dennis Wee Group in 2017 has given it an edge over its rivals. The business has been going strong for the agency as it already has been hired as marketing agents for 20 major projects this year and the clientele cuts across developers.
In 2017 its agents were able to see though 56,000 sales which an impressive growth from 46,229 sales which in 2016.
This helped the agency double its profit after tax to S$8.7 million which is more than twice the profits of S$4.17 million earned in 2016.
The company saw its revenue increase by 47% during the same period to reach S$341.32 million.
PropNex International had an impressive 2017 where it increased its profit after tax by 149% to clock S$8.98 million while its revenue grew to S$115.32 million or 168% increase over the preceding year.
PropNex’s IPO comes at a time when APAC Realty Ltd successfully raised S$58 million while being listed and its price has surged 43% from its listing price.