Purplebricks, which allows homeowners to sell their properties for a flat fee from £665 plus VAT, floated on the AIM market last week at a value of £240.3 million, with shares initially trading at an opening price of 104.5p before dropping to 96.5p.
The company, which launched in April 2014, is backed by some heavyweight investors, including prominent Fund Manager Neil Woodford, Paul Pindar (left), the retired Chief Executive of outsourcing group Capita, and Errol Damelin, the Founder of payday lender Wonga.
Purplebricks, which has swiftly established itself as the number one online estate agency, prides itself on offering a cheaper service than traditional estate agents and currently lists in the region of 4,300 homes for sale, and said its market share among the top six online estate agents had grown to in excess of 60 per cent.
Purplebricks charges a flat fee of £665 plus VAT for a sale in the UK, rising to £965 plus VAT in prime London post codes. There are some additional charges for a premium service.
The funds raised from the float will allow Purplebricks to increase its presence across the UK, according to Chief Executive Michael Bruce.
He said, “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.”
The firm aims are to continue to build its lettings business, grow its mortgage business and optimise the significant and growing traffic visiting its website.
In a statement, the business added, “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.”