What a time for PropNex to list on the SGX! Within days more property cooling measures were announced and PropNex share price tanked over 20% in a day!

Could this be an investment opportunity? The two largest real estate broking agencies in Singapore have tapped the capital markets to fund their business expansion. ERA (or APAC Realty – the name of the listed entity) was listed on 28 Sep 2017 while PropNex is planning to list on 2 Jul 2018. They both topped the real estate agent count in Singapore.

#1 Real estate broking is an asset-light business, so why need to raise funds?

The service industry usually does not require large assets to operate. Real estate broking probably requires office, computers and furniture, and lots of agents running around to close deals. There’re little fixed costs and hence they incur low capital expenditure ...