Real estate agency PropNex is seeking a listing on the Singapore Exchange (SGX) mainboard, lodging its preliminary offer document yesterday.
Its initial public offering (IPO) will comprise a placement and a public offering, with cornerstone investors having also entered subscription agreements for a total of 50 million shares.
The cornerstone investors are Affin Hwang Asset Management Berhad, FIL Investment Management (Hong Kong), Nikko Asset Management Asia, NTUC Income Insurance Co-operative, Samsung Asset Management (HK) and Value Partners Hong Kong.
The firm does not have a fixed dividend policy, but the board intends to recommend and distribute dividends of at least 50 per cent of announced net profit after tax attributable to the owners of the company (excluding exceptional items) for the period from the listing date to Dec 31 this year, as well as FY2019.
PropNex is Singapore's largest real estate agency with 6,688 agents.
With the listing proceeds, the firm intends to strengthen its market position by recruiting more salespersons, developing more effective training programmes, improving administrative support and putting more resources towards marketing projects.
Proceeds will also be used for overseas expansion, with PropNex looking into providing more services such as valuation, research and marketing, as well as corporate leasing.
Total number of PropNex shares for which cornerstone investors have entered subscription agreements.
PropNex does not expect to use the IPO proceeds to meet its payment obligations to Dennis Wee Realty, with which it entered into a business takeover agreement last year for the transfer of 845 salespersons, at an aggregate purchase consideration of $5 million.