Online estate agents PurpleBricks shares dip after IPO
Online estate agents Purplebricks have launched on London’s alternative investment market (AIM) with shares initially valued at £240.3 million up for sale.
Shares had fallen slightly from 100p to 94p after their first two hours of trading. Purplebricks is the first of a series of online estate agents to debut on the stock market.
Launched in April 2014, the firm has raised £58 million from selling shares to institutional investors.
Speaking ahead of the launch, Chief Executive Michael Bruce said: “The Purplebricks’ team have dedicated four and a half years to develop and establish a model which is designed to change the way we sell, buy and let residential property. We have a compelling customer proposition of a low flat fee combined with a high quality and personalised service, underpinned by our proprietary technology platform.
“The IPO will represent a major milestone in the rapid development of Purplebricks, which is already the fourth largest estate agency in the UK based on a monthly run rate of the Company’s transaction numbers.
“The funds raised will allow us to further deepen our presence across the UK through additional investment in people, technology, infrastructure and marketing to deliver our ambitious growth plans as well as value for all of our shareholders.”
Purplebricks is said to be the fourth-largest estate agency in the UK by fee-paying customers. The company has a flat fee pricing structure of £798 for a sale anywhere in the UK outside of London.
In a statement, the business added: “The company’s aims are to continue to build its lettings business, grow its mortgage business and optimise the significant and growing traffic visiting its website.
“Purplebricks approaches the key trading period of the first quarter of the new calendar year with confidence and, in the directors’ opinion, with the Purplebricks hybrid model set to continue to change the way that houses are sold and let.”