iProperty Group Completes $10 million Placement and Announces Share Purchase Plan

Thursday June 7th   – iProperty Group Ltd (ASX: IPP), the owner of Asia’s No. 1 network of property portals under the iProperty brand (www.iproperty.com), is pleased to announce that it has raised A$10.0 million through a private placement of new ordinary shares to existing shareholders and new institutional and sophisticated investors at an issue price of $1.00 per share.  (“Placement”)

In addition, the Company will offer eligible shareholders the right to participate in a Share Purchase Plan (“SPP”) which will enable shareholders on the register at the Record Date (6 June 2012) to apply for up to A$15,000 of shares at the lower of the Placement price or a VWAP calculated price.  Further details of the SPP, including the timetable will be provided to shareholders shortly.

Proceeds from the capital raising will be combined with current cash reserves and applied to:

  • Consolidation opportunities across its core markets of Malaysia, Hong Kong, Indonesia and Singapore;
  • Fund potential entry to new geographic markets that meet the Group’s strategic criteria;
  • Fund new cross-network opportunities such as the 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.

Commenting on this announcement, iProperty Chief Executive Officer, Shaun Di Gregorio, 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.

“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 – 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.”

E.L. & C. Baillieu Stockbroking Ltd was appointed as Lead Manager to the Placement.

Further details of the capital raising, along with a business update are provided in an Investor Presentation to be released today.

As a result of this announcement, iProperty will resume trading from the commencement of trading today. The Placement was conducted in accordance with ASX Listing Rule 7.1 and will be settled in one tranche.