On Friday, PropertyGuru, a Singapore-based online real estate company, had agreed to go pubic via a merger with an SPAC (Special Purpose Acquisition Company) backed by billionaire investors Peter Thiel and Richard Li, which in effect would proffer the combined entity a market valuation of roughly $1.78 billion.
Apart from that, according to the financial terms of the SPAC merger deal, the Southeast Asian online real estate company offering a website to buy and sell properties, would merge with a blank-check firm, Bridgetown 2 Holdings, while the merger would fetch a lump-sum of $431 million for PropertyGuru in fresh capitals including a private investment of $100 million from Naya, Akaris Global Partners, REA Group, Baillie Gifford alongside one of the largest asset managers in Malaysia, PropertyGuru said in a statement later last week.
On top of that, Australia-based REA Group had also pledged to an additional $32 million in fresh investments into the company, as the merged entity would be listed in NYSE once the proceedings are completed, PropertyGuru said in a statement.
In factuality, SPACs or Special Purpose Acquisition Companies (Blank check firms) are shell entities that could be capitalize on to taking a company public following a merger or acquisition, while SPACs are allowed to raise funds to finance their slated mergers or acquisitions through private fundraising campaigns or initial public offerings without telling their investors about the companies they have been pursuing.
PropertyGuru to go public following merger with Thiel-backed SPAC
Meanwhile, as the 14-year-old online property company that offers a digital real estate marketplace where potential buyers and sellers could meet, has been looking to expand its business having had 49,000 active property merchants across Indonesia, Malaysia, Thailand, Vietnam and Singapore, Peter Thiel, the President of Thiel Capital said, “The market for property is probably the oldest market in the world, and only now is it beginning to change rapidly.
As PropertyGuru spearheads that change in Southeast Asia, Bridgetown 2 will provide capital and expertise to accelerate it even further”.