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PropertyGuru leans towards lower end of IPO range - sources

By Scott Murdoch and Anshuman Daga

By Scott Murdoch and Anshuman Daga

Oct 22 (Reuters) - PropertyGuru, the Southeast Asian online realty company, is offering shares at the lower end of the A$3.70 to A$4.50 indicated range as it takes orders for its Australian initial public offering (IPO), according to two sources close to the deal.

A book message, seen by Reuters, sent to investors on Tuesday by the deal's joint lead managers, UBS and Credit Suisse, also says institutional demand is oversubscribed. The sources did not want to be identified because they were not authorised to speak to the media.

Ahead of the deal, PropertyGuru had indicated the stock would be priced to institutional shareholders to raise up to A$380.2 million.

"These firm allocations to retail brokers, combined with early orders and indications received from institutional investors prior to the formal opening of the bookbuild, are in excess of the deal size at the bottom end of the price range," the book message said.

"Institutional price sensitivity is currently focused on the bottom end of the price range with a number of indications above that level," the message said.

Shares are due to start trading on Friday.

PropertyGuru, backed by KKR and TPG Capital, is based in Singapore and operates in that market along with Vietnam, Thailand, Malaysia and Indonesia.

The company has said it chose to list in Australia because of the presence of Domain and REA Group on the Australian Securities Exchange.

KKR and TPG are not selling down in the IPO but their holdings will be diluted.

KKR's stake will shift from 30.4% to 26% and KKR's will move from 27.25% to 23.3%, according to the PropertyGuru prospectus.

Emtek, the integrated Indonesian media company, will sell down 18.2 million shares, taking its holding from 15.5% to 7.33%. (Reporting by Scott Murdoch. Editing by Gerry Doyle)