Despite strong support from global investors, Singapore-based startup PropertyGuru has abruptly pulled the plug on a planned IPO just two days before it was due to list on the Australian Securities Exchange (ASX).
The IPO was estimated to raise as much as A$362.6 million (S$338.3 million), according to the ASX.
“The Board of PropertyGuru has decided to withdraw the IPO due to uncertainty in the current IPO market,” the company said in a statement on Wednesday (Oct 23).
It added that it did not require new funds to continue operations, and its business outlook remained positive.
In its statement, the online realty startup said that majority shareholders TPG Capital and KKR (who currently own 58 per cent of the company), did not plan to sell their shares at the IPO, and had entered into voluntary escrow arrangements until February 2021.
Under an escrow arrangement, shares are held by a third-party for a specific period of time before being released.
PropertyGuru Chairman Olivier Lim added that the company had had “strong engagement with prospective investors”, but needed to take into account “current IPO market sentiment”.