Zoopla has priced its flotation in the lower half of its proposed range, valuing the property website at less than the £1bn it was seeking.
The company said it would sell 38.3% of its share capital at 220p a share, giving it a market value of £919m.
Last month it set the price range for the initial public offering (IPO) at 200p to 250p. In early conditional dealing, the shares rose 5.5% to 232p, according to IG, the online trading firm.
The rise means Zoopla has avoided the early embarrassment of its shares falling when trading starts. Unconditional dealing in the shares will start on 23 June. No new shares are being sold, meaning the proceeds after flotation costs will go to existing shareholders.
The IPO values Zoopla founder Alex Chesterman's 8% stake at £73m. He has sold 3.5%, making him £32m, and will hold on to the remaining stake for at least a year.
Daily Mail and General Trust owns 52% of Zoopla and the float values the stake of the Daily Mail newspaper's parent company at £478m. Zoopla planned its IPO with the property market resurgent and investors keen to snap up new online businesses as consumers conduct more of their business on the internet.
But investors' appetite for flotations has weakened in recent weeks, while concerns have increased that the housing market is overheating.
Chesterman, who is also Zoopla's chief executive, said: "Today's announcement marks an important milestone for our business following a number of years of strong growth and having built a market-leading proposition.
We have received a significant level of institutional investor support in our business which once again underlines the growth potential of Zoopla Property Group." Zoopla's sites, which include Primelocation, get more than 40m visits each month.
Its revenue, mainly from estate agent advertising subscriptions, rose 26% in the six months to the end of March.
Chesterman said last month that talk of a housing bubble was misplaced and that investors saw the long-term potential for a cash-generative business that provides consumers with a wealth of property data while charging subscriptions to estate agents.
He launched Zoopla in early 2008 just as house prices were falling as the financial crisis took hold. He made his first millions by building up and then selling LoveFilm.
theguardian.com
The company said it would sell 38.3% of its share capital at 220p a share, giving it a market value of £919m.
Last month it set the price range for the initial public offering (IPO) at 200p to 250p. In early conditional dealing, the shares rose 5.5% to 232p, according to IG, the online trading firm.
The rise means Zoopla has avoided the early embarrassment of its shares falling when trading starts. Unconditional dealing in the shares will start on 23 June. No new shares are being sold, meaning the proceeds after flotation costs will go to existing shareholders.
The IPO values Zoopla founder Alex Chesterman's 8% stake at £73m. He has sold 3.5%, making him £32m, and will hold on to the remaining stake for at least a year.
Daily Mail and General Trust owns 52% of Zoopla and the float values the stake of the Daily Mail newspaper's parent company at £478m. Zoopla planned its IPO with the property market resurgent and investors keen to snap up new online businesses as consumers conduct more of their business on the internet.
But investors' appetite for flotations has weakened in recent weeks, while concerns have increased that the housing market is overheating.
Chesterman, who is also Zoopla's chief executive, said: "Today's announcement marks an important milestone for our business following a number of years of strong growth and having built a market-leading proposition.
We have received a significant level of institutional investor support in our business which once again underlines the growth potential of Zoopla Property Group." Zoopla's sites, which include Primelocation, get more than 40m visits each month.
Its revenue, mainly from estate agent advertising subscriptions, rose 26% in the six months to the end of March.
Chesterman said last month that talk of a housing bubble was misplaced and that investors saw the long-term potential for a cash-generative business that provides consumers with a wealth of property data while charging subscriptions to estate agents.
He launched Zoopla in early 2008 just as house prices were falling as the financial crisis took hold. He made his first millions by building up and then selling LoveFilm.
theguardian.com
No comments:
Post a Comment