The planned flotation of online property portal OnTheMarket edged closer this week as the firm’s parent voted to set up a new company to help with an initial public offering.
Members of Agents’ Mutual, which owns OnTheMarket, this week voted to change their stake in the mutual to shares in new firm OnTheMarket Ltd.
OnTheMarket Ltd would then be re-registered as a plc before an IPO.
OnTheMarket wants to challenge Zoopla and Rightmove and aims to raise £50m by floating on the Alternative Investment Market.
Cash raised will support a big advertising campaign. It will also boost the firm’s sales, account management and technology.
Members will retain the majority of the equity in the company if it floats successfully.
Agents’ Mutual is eyeing a valuation of between £200m and £250m.
Agents’ Mutual chief executive Ian Springett says: “I am very pleased at such a resounding demonstration of broad member support for our strategic proposals for the business.
“We firmly believe that should we be successful in raising external capital, we will secure the resources we need to take the business to a new level in the interest of property advertisers, consumers and shareholders alike.”
OnTheMarket is the UK’s third-largest property portal. It was launched in 2015 and now has around 2,700 estate agent and lettings agent members.