PropNex Realty’s CEO, Ismail Gafoor.
In a bid to replicate the success of its rival APAC Realty, Singapore’s largest property agency PropNex Realty plans to launch an initial public offering (IPO) that will raise about $40 million, reported Bloomberg recently citing anonymous sources.
APAC Realty raised $58 million during its IPO in Singapore last year.
Targeting a market capitalisation of as much as $250 million, PropNex is looking to launch the offering as soon as next week with the aim of listing as early as end-June, said one of the sources who declined to be identified as the deliberations are private.
While the details of the offering may still change, the company is seeking to market the IPO shares at 62 to 68 Singapore cents per piece, said the source.
PropNex became the largest property agency in Singapore by salesforce last year, with nearly 7,000 agents, following its merger with Dennis Wee Group.
“As a private company, PropNex will evaluate the company’s capital needs whenever necessary and does not comment on these matters publicly,” the company said in an email statement.
Singapore saw a growing number of real estate redevelopment deals, indicating that the local housing market is on the rebound after a four-year slump. Cushman & Wakefield Singapore expects en bloc sales to hit $12.8 billion this year, or its highest in over a decade.
Prices of private homes in Singapore rose 3.9 percent quarter-on-quarter in Q1 2018, the most in nearly eight years, revealed Urban Redevelopment Authority data.