The red flags in Ohmyhome’s IPO

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Hello reader,

PropertyGuru, the property listings portal, was one of my most visited apps when I was looking to buy a house a couple of years ago. I recall constantly filtering and scrolling through dozens of listings whenever I had free time. 

All that came to a screeching halt once I did find the home I was looking for. I’ve rarely opened the PropertyGuru app since. 

Ohmyhome, a Singapore-based property solutions platform, is trying to extend user engagement by going beyond listings and allowing users to find other relevant services – from legal help and mortgages to interior design and furnishing. 

Much like a traditional real estate brokerage, the company also employs real estate agents who broker transactions on behalf of users – the difference is that real estate agents are not considered employees at traditional brokerages. 

Now Ohmyhome wants to list in the US at a valuation of US$88 million. 

In this week’s big story, I take a closer look at the company, including what it disclosed in its prospectus. 

It wasn’t a pretty picture: There are major red flags that investors should be aware of, including a related-party transaction that flattered revenue growth figures for the most recent reporting period, dizzying valuations, and doubts over the company’s ability to continue as a going concern. 

Tech valuations have fallen dramatically in 2022 and are unlikely to recover until there are signs that the US Federal Reserve is ready to cut interest rates – some analysts expect this to happen later this year, but we at Tech in Asia are not as confident. 

Companies that can afford to wait before listing would presumably want to in order to secure higher valuations. The ones willing to brave current conditions are either supremely confident of their prospects or have no choice but to list to secure funding – this calls for greater scrutiny from investors. 

— Simon

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THE BIG STORY

Ohmyhome IPO raises red flags
The Singapore-based proptech firm wants to list on the Nasdaq, but our analysis of its prospectus suggests a successful IPO may be a long shot.

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3 Trends to keep an eye on

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2 Eye-popping numbers  👀

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The one you didn’t see coming

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