OTM relief after ‘small number’ of agents sell shares
The portal has lined up founding agents to voice their support after investors sold more than 3 million shares.
OnTheMarket has moved to reassure investors after shareholders sold more than 4% of the total value of the company.
Shareholders were able to sell after a five-year ‘lock-in’ period expired – OTM floated on the AIM market in 2018.
Institutional investors bought the 3.1 million shares, of which 1.9 million (2.5% of the total shares) were owned by OTM agents, and the remainder by product and technology director Morgan Ross. But it means the portal is still majority owned by agents, with what the company described as “a very small number” selling their shares.
Jason Tebb, CEO at OTM says: “Agents are at the heart of everything we do and we are pleased that an overwhelming majority of them have chosen to continue to support OnTheMarket and remain as shareholders for the next stage of our journey.
“Our strategy to become a tech enabled property business is working and we are making significant progress. We continue to have a unique position as a majority agent-owned business and look forward to working with agents to continue to develop our offering in the future.”
Recently a potential investor in OTM wrote a provocative ‘open letter’ to agent stakeholders criticising its lack of success against Rightmove and Zoopla, questioning its business plan and calling for executive chairman Christopher Bell to be replaced.
Milestone
On the announcement of the share sale, OTM lined up founding agents to voice their support.
Robert Scott-Lee, managing director of Chancellors, says: “The low level of share transactions preceding the expiry of agent lock-in arrangements is another positive milestone for OnTheMarket.
“We see clear opportunities for further growth and development, which is why shareholders have displayed their commitment to remaining part of the agents’ portal.”
Paul Smith, CEO at Spicerhaart, says: “We remain a strong supporter of OnTheMarket’s proposition of sustainable fair pricing and the expiry of agent lock-in arrangements without significant share sales shows that we are not alone.”
John Ennis, CEO at Chestertons, says: “The fact that agents up and down the country are holding onto their shares of OnTheMarket clearly show that they believe in the portal and are committed to the partnership for the long-term.”
I decided to keep the OTM shares we were given. For a while now it has had the potential of a share sale looming ever closer. It might even be a good time to buy OTM shares, given that the scale of the sell off is not as bad as the expectation which was factored in.
I was one of the original small agents who invested long term and decided to keep my shares I am still desperate for OTM to knock Rightmove right out of the portal market – but only agents can do that by refusing to use them. Rightmove have to be the worst customer service company in the world so why do we keep paying their extortionate fees that just rise every year no matter what? The general public would not put up with this sort of service. The only way is all agents to refuse to use them unless they half their fees. Come on you Sales Agents, I include my own Sales Director in this as well! Time to stand up and be counted if we all stopped the general public would soon swap to where the properties are!