In a move that underscores a significant shift in strategy, PropertyGuru, one of Southeast Asia’s leading prop tech companies, has announced its acquisition by EQT Private Capital Asia in an all-cash transaction valued at approximately USD 1.1 billion. This development comes after years of preparation for an IPO and signals a new chapter in the company’s journey.
Founded in 2007, PropertyGuru emerged over time as a dominant force in Southeast Asia’s real estate market, bridging the gap between property seekers, agents, and developers across Singapore, Malaysia, Thailand, Vietnam, and Indonesia. The company has consistently pushed the envelope with solutions like StoryTeller, a virtual reality platform that reimagines property tours, and PropertyGuru Finance, an online mortgage marketplace. Today, PropertyGuru is said to host over 2.8 million real estate listings and serve more than 34 million property seekers each month.
The road to a public listing has been a winding one for PropertyGuru. After shelving plans for an IPO in Australia in 2019 due to market uncertainties, the company revisited its ambitions in 2021, through a merger with Bridgetown 2 Holdings, a special purpose acquisition company (SPAC). This move culminated in PropertyGuru’s debut on the New York Stock Exchange (NYSE) on March 18, 2022, at a valuation of USD 1.8 billion. Yet, despite these efforts, the company’s path took a turn.
The decision to pivot from pursuing an IPO to accepting an acquisition offer from EQT reflects the challenges PropertyGuru has faced, particularly amid the turbulence brought on by the Covid-19 pandemic. The real estate sector was hit hard, prompting the company to innovate rapidly and adjust to evolving market conditions. However, the uncertainties of the public market, combined with the pressures of maintaining investor expectations, led PropertyGuru to reconsider its strategic direction.
In February 2024, this strategic reevaluation became evident when PropertyGuru laid off 79 employees—a decision described by CEO and managing director Hari Krishnan as the result of a “comprehensive review” of operations. This move was indicative of the broader recalibration underway at the company.
Under the terms of the merger with EQT, PropertyGuru’s shareholders will receive USD 6.70 per share in cash, representing a 52% premium over the company’s closing share price on May 21, 2024. This offer also reflects substantial premiums of 75% and 86% over the 30-day and 90-day volume-weighted average share prices, respectively, leading up to that date.
The merger has garnered support from major shareholders, including TPG and KKR, who collectively hold 56% of PropertyGuru’s ordinary shares. The transaction is expected to close between Q4 2024 and Q1 2025, following which PropertyGuru will delist from the NYSE and operate as a private company.
The partnership with EQT is expected to offer PropertyGuru access to a wealth of resources and deep expertise in the technology and online marketplace sectors. This alignment positions PropertyGuru to continue its mission of leading Southeast Asia’s property data sector, free from the short-term pressures of the public markets.
With its headquarters remaining in Singapore, PropertyGuru will continue to serve its growing user base across Southeast Asia, leveraging EQT’s backing to enhance its platform and deepen engagement with both consumers and stakeholders.