Property portal OnTheMarket (OTM) has issued a further 220,319 ordinary shares to distribute to several estate agents in return for signing long-term deals.
Based on the current share price, the stock is worth £209,300 and will go live on the London AIM stock exchange on Thursday.
The new listing will value the company at £61 million. OTM’s share price has been sliding dramatically over the past either weeks after hitting a high of £1.40p a share in late February and sinking to a current price of 95p, a drop of a third.
The issue of the shares is part of a concerted campaign this year by OTM to sign agents up to long-term deals and is part of a range of offers available to sweeten ‘paid-for’ listing agreements.
OTM has plenty of shares to give away – this latest tranche is part of a war chest of over 36.4 million ‘recruitment shares’ at its disposal.
“Such equity issuance alongside long-term listing agreements enables agents to support the only major agent-backed portal with a view to creating a fairly-priced alternative to Rightmove and Zoopla and to share in any increase in the value of the company,” says OTM.
Since it listed on AIM in January 2018 OTM’s agency branch base consisted almost entirely of paying contracts but since then its growth strategy has been predominantly to offer free listings under short-term introductory trial offers, with a view to conversion to full-price contracts “when the value of the portal has been demonstrated”.