Estate agency Foxtons’ share price rose sharply during its first morning of trading after the company’s IPO on the London Stock Exchange today. Plans for the offering were reported in Mortgage Strategy on 7 June this year.
Company documents show Foxtons aimed to generate gross proceeds of £390m from the intial offering and achieve a market capitalisation of £649m.
The offered share price range was between 190p to 230p for the 282,176,468 shares being released on admission.
The offer price hit the top of that range at 230p, helping to achieve the targeted market-capitalisation with demand high for stocks linked with the resurging UK property market. Foxtons has 44 offices, of which 42 are based in London where property prices have appreciated by 9.7 per cent in the last twelve months.
This is the second major flotation by a property firm this year after Countrywide went public in March and achieved a market cap of £750m with a share price of 350p.
Foxtons CEO Michael Brown says: ”We are delighted that our initial public offering has been successfully received and there has been strong interest from investors. We welcome our new shareholders to Foxtons and we are looking forward to the next stage in the development of the business as a listed company.”
Coreco director Andrew Montlake says: “When all is said and done, Foxtons have developed a strong brand and obviously a profitable one. Any deal like this shows faith in our sector which is always welcome.
“With the resurging property market I think we will see a lot more deals like this taking place and more companies going public over the next couple of years.”
As of 3.05pm the shares were trading at 268p, down from an earlier high of 286p.