Property firm set to list on SGX

PROPERTY firm HSR announced yesterday that it will list on the Singapore Exchange via a reverse takeover of electroplating company Wepco.

As part of the move, Wepco will apply to be transferred from the Catalist board, where it is now listed, to the SGX mainboard.

The move involves Wepco acquiring the real estate giant and issuing 80 million shares at 50 cents a piece, a total of $40 million, to HSR owners Patrick Liew and his wife Kellie Lim.

Mr Liew, who is HSR's chief executive, and Ms Lim will hold 83 per cent of Wepco's enlarged share capital. There will then be a placement exercise of Wepco shares to comply with listing requirements.

Mr Liew said the reverse takeover will allow the firm to list faster than if it were to go the initial public offering route.

He added that the listing will give HSR access to the capital markets as well as liquidity and branding for expansion.

HSR will focus on growing in niche areas such as cross-border property transactions and licensing its structured training programmes for new agents.

The company has marketed properties in Australia, New Zealand, Canada and the United States as well as in its home market.

HSR has about 7,000 property agents in its fold and claims to have captured 40 per cent of the private residential resale market and 32 per cent of the HDB resale market last year.

It will be only the second listed property agency, after mainboard-listed Hersing Corporation, which owns ERA.

The reverse takeover needs backing from the authorities as well as from Wepco shareholders.

Source: Straits Times, 17 Nov 2009