Purplebricks shares carried on rising in value over the Christmas period after the initial boost given to the company’s stock by the Conservative win during the General Election.
The 20% increase in its share price from £1.05p on 12th December to £1.26p a share at the start of trading today is, industry consultant Andrew Stanton says, a sign that a takeover may be in the offing.
The most likely buyer would be existing major shareholder and German media giant Axel Springer, which may be planning to offer other shareholders a premium price for their stock and take the estate agency back into private ownership.
But Purplebricks is not the only property industry PLC to see its stock carry on rising in value after the General Election.
Shares in Savills, Countrywide, Rightmove and Foxtons have also been rising alongside Purplebricks as the City shares feeding frenzy has continued following the election. Savills’ shares have increased by 20% since the election, Rightmove’s by 10% and Foxtons by nearly 30%.
But Purplebricks improved stock price is happy ending to a miserable year. The company’s shares have been tumbling over the past 12 months, kicking off 2019 at £1.81 before tumbling to 90p in late May as news of its struggling operations in Australia and the US reached investors. The company exited both markets in September.