PropNex clears air on discrepancies over Dennis Wee Realty transaction

Romesh Navaratnarajah27 Jun 2018

Mohamed Ismail CEO PropNex resize

PropNex Realty’s CEO, Ismail Gafoor.

Real estate agency PropNex Realty has clarified certain matters cited in recent media reports that its transaction involving Dennis Wee Realty (DWR) was without monetary terms and that there were discrepancies between its audited revenue and profit for FY2016 to the figures in its preliminary prospectus.

“As at the date of the press conference, the memorandum of understanding entered into between PropNex Realty and DWR had set out the understanding, intention and agreement-in-principle for, among others, DWR to assist in the transfer of DWR salespersons to PropNex,” said PropNex.

More: PropNex Realty aims to raise $40m in IPO 

“Neither the company nor (PropNex CEO) Mohamed Ismail had indicated that the transfer of DWR salespersons would be free.”

The statement also clarified that the unaudited revenue of $278.9 million and net profit of $9.23 million reportedly provided by the company were “announced prior to the group’s consolidation of its business entities in the lead-up to the proposed initial public offering”.

The preliminary prospectus, on the other hand, contains the audited financial statements of the group, it added.

Separately, PropNex announced that it has registered the prospectus for its initial public offering (IPO) and listing of shares on the Singapore Exchange mainboard.

It revealed that it aims to raise $38 million from the IPO as well as boost its market capitalisation to $240.5 million.

It noted that 42.5 million shares are being offered at 65 cents each. Of these, 40.375 million shares will be offered via a placement for investors.

In fact, several cornerstone investors have already agreed to subscribe for a total of 50 million shares at the offering price, it said. Among these include FIL Investment Management (Hong Kong) and NTUC Income Insurance Co-Operative, which subscribed for 12.35 million shares and 9.05 million shares respectively.

The offering will open in Singapore upon registration of the prospectus and will close at noon on 28 June. Trading of PropNex’s shares is expected to commence on a “ready” basis at 9.00am on 2 July.

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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email


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