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Summary
- Peter Thiel-backed blank check company Bridgetown 2 Holdings is said to take PropertyGuru public in a billion-dollar merger deal.
- PropertyGuru is one of the leading digital real estate firms in Southeast Asia, with 37 million monthly customers.
- Stocks of Bridgetown are likely to rise to an all-time high on the back of this merger deal.
PropertyGuru, a prominent Singapore-based digital real estate company, announced on Saturday, July 24, that it is set to go public through via a merger.
The firm is combining with billionaire Peter Thiel-backed special purpose acquisition company (SPAC) Bridgetown 2 Holdings (BTNB:US, NASDAQ:BTNB).
Let’s take a look at PropertyGuru’s plans for going public.
PropertyGuru SPAC merger plans
The real estate firm has reportedly been valued at US$ 1.35 billion. Its merger deal with the blank check company is likely to be worth US$ 1.78 billion. The joint entity will file for its initial public offering (IPO) on the New York Stock Exchange (NYSE).
This SPAC deal is said to see a round of private investment in the equity of around US$ 100 million from investment trusts Baillie Gifford, Akaris Global Partners, etc., as per the company’s statement.
The company also expects an additional US$ 32 million equity investment from Australia-based REA Group.
PropertyGuru claims to have 37 million clients and hold 2.8 million listings per month. The company reportedly has 49,000 affiliated real estate dealers on its platform.
The online property firm has capitalized on the COVID-19-triggered real estate boom across Southeast Asian countries, such as Malaysia, Vietnam, Thailand, and Indonesia.
Now, let us look at the stock performance of the blank check firm PropertyGuru is merging with.
Bridgetown 2 Holdings (BTNB:US, NASDAQ:BTNB)
The Hong Kong-based SPAC firm held its IPO on January 25, 2021, where it raised nearly US$ 300 million, as against its initial projection of US$ 260 million.
The SPAC stock registered an all-time high of US$ 14 apiece on February 8. Although it is currently down 29 per cent against its record high, the scrip is likely to gain price momentum in the premarket hours on Monday, July 26.
Bridgetown 2 Holdings traded in green after hours on Friday, July 23. Its volume spiked to 1.16 million shares, as compared to its 10 day-average volume of 233,783 shares. It has total outstanding shares of 29.9 million.
Trading at US$ 9.94 per share, the SPAC has a market cap of US$ 297 million.
Bridgetown’s one-year price chart against moving average multiple. (Source: EODHD/Others)
The SPAC stock has been marching flat in the last one week. It has declined as much as 2.5 per cent quarter-to-date (QTD).
In regard to the merger, Peter Thiel, who is the president of Thiel Capital, has said that property market is “beginning to change rapidly” and that Bridgetown 2 will support PropertyGuru with capital to accelerate this change.
Investors seeking to explore PropertyGuru can choose to wait for its SPAC merger to complete or invest in Bridgetown 2’s stocks after a thorough evaluation.
