OnTheMarket to float on the AIM market
Property portal OnTheMarket plans to float on the AIM market of the London Stock Exchange as it looks to raise roughly Â£50m of new equity capital to fund growth.
OnTheMarket, which is a fierce third-placed rival behind Rightmove and ZPG's Zoopla, is expected to achieve a valuation of between Â£200m and Â£250m.
The portal is owned by the 2,700 or so estate agents and lettings agencies behind Agents’ Mutual, which launched the portal in January 2015 to prove a challenge to the dominance of the two main operators, with about 5,700 agent branches listing their properties with the OnTheMarket.com, led by a powerful group of board member firms Savills, Knight Frank, Strutt & Parker, Chestertons, Douglas & Gordon, Glentree Estates, Kinleigh Folkard & Hayward and Spicerhaart Group.
An initial public offer (IPO) will only be able to go ahead if Agents' Mutual's members first vote in favour of converting their existing membership into ordinary shares, with a general meeting planned for 6 September.
The board member firms have all agreed to vote in favour and commit to five year listing deal on the portal.
Agents’ Mutual chief executive Ian Springett said is was "the beginning of a very exciting new chapter in our development".
"We believe that by raising capital from new investors we will substantially strengthen our market position. Agents provide the main property listings content and the main revenue sources for property portals.
"Our Members’ ownership of shares in the newly listed company will enable them to remain enfranchised, aligned and fully invested in OnTheMarket’s future success.”