Asia’s leading group of property portals, the iProperty Group, announced today that it had raised A$10m (US$10m) through a placement to existing and new institutional investors.
According to the press release, the proceeds from the capital raising will be combined with current cash reserves and used to:
- Secure acquisition opportunities across its core markets of Malaysia, Hong Kong, Indonesia and Singapore;
- Fund potential entry into new geographic markets that meet the strategic criteria of the Group;
- Fund new cross-network opportunities such as the recent launch of the regions first commercial and industrial property portal – commercialasia.com;
- Accelerate growth of existing businesses; and
- Payment of approximately $700,000 in costs incurred to date relating to incomplete M & A activity in the region.
In addition, iProperty is raising more money from its existing shareholders via a Share Placement Plan in which any eligible shareholder can acquire up to $15,000 worth of shares.
The Group is clearly cashing up to fuel aggressive growth in its existing markets. The sites within the Group are:
- www.iproperty.com.my – the clear leader in Malaysia and the world’s 3rd most dominant portal,
- www.gohome.com.hk – the dominant Chinese language portal in Hong Kong (www.gohome.com.hk)
- www.rumah123.com – the market leader in Indonesia and www.rumahdanproperti.com – the number 3 player in the Indonesian market
- www.iproperty.com.sg – the second place player in Singapore
- www.commercialasia.com – Asia’s first commercial portal.
Shaun Di Gregorio, iProperty Group CEO, said, “We are pleased to complete the capital raising. Our strong balance sheet positions us even better to accelerate the business within our existing markets through both organic and acquisitive growth. We are also better positioned to quickly enter new markets as acquisition opportunities emerge.”
Di Gregorio went on to say, “The capital raising was strongly supported by existing shareholders and at the same time we have been able to bring nine new high profile Institutional investors on board who have been following our progress over recent years – a very pleasing outcome. The strong support from Institutional investors positions us well for the future. We are also pleased to offer our existing shareholders the opportunity to participate in the capital raising through an attractively priced Share Purchase Plan.”
For the year ended December 2011, the business delivered A$12m (US$12m) in revenues and analysts are predicting significant growth in 2012. Recently Baillieu’s stock brokers released research on the iProperty Group and set a target price of A$1.45 – well about the placement price of A$1.
Disclosure: Parties associated with Property Portal Watch own iProperty Group shares