OnTheMarket’s parent company, Agents’ Mutual is looking to raise £50m in funding for the company through an IPO on London’s Alternative Investment Market (AIM) to launch OnTheMarket plc. Investment bank Zeus Capital has been sounded out to broker the float, which would value the company between £200-250m.
The float would be used to fuel the growth of the OnTheMarket portal, which currently ranks third in the UK residential property portal market, behind Zoopla and Rightmove. As it stands, the firm is owned by its members, including Knight Frank, who would have to vote to agree a deal. According to a report from Reuters in the New York Times, the vote will take place on 6th September. Existing shareholders will keep a large chunk of OnTheMarket's shares, with the company apparently also looking for institutional investors to raise the remaining funds.
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Sources close to the company suggest that the overall goal is to rival Zoopla and Rightmove, and OnTheMarket hopes to use the funds to launch a large-scale TV, digital and print media campaign, as well as to expand its sales organisation.
Chief executive Ian Springett said of the raise:
We believe that by raising capital from new investors we will substantially strengthen our market position.
This latest rumour follows a spate of UK property IPOs and rumours, including the LendInvest Bond issue and the potential Ezylet float.