Purplebricks shares rose by 4.32% or £45.8 million yesterday during trading on London’s AIM, valuing the hybrid estate agency at £1.11 billion.
At the end of trading, Purplebricks shares price stood at £4.10p, nearly four times its price in mid-November last year and the highest it has been to date – a year ago they were trading at just £1.37p each.
This means the company, which recently launched a new tranche of ‘commisery’ TV adverts, is now valued at nearly three times the market capitalisation of Countrywide, and almost as much as Savills although it still has some way to go before it reaches ZPG (£1.63 billion) or Righmove (£4 billion).
Belvoir Lettings also saw its share price rise yesterday, by 2.34% to £1.06p but Countrywide’s share price dropped by nearly 3%.
Purplebricks’ most recent trading statement on the 4th may saw its share price rise by 2% on the back of good news from its UK operation including instruction growth of 83%, and “encouraging” results from its fledgling Australian operation.
At the time leading investment advice website Motley Fool pondered whether its then share price of £3.22p could ever reach £4, surmising that “Purplebricks could quite conceivably achieve this price based on optimism alone”, a prediction that has come to pass.
The optimism around Purplebricks shares in the city might be linked to a recent report by leading proptech consultant James Dearsley, who as we revealed last week, believes the hybrid agent is a threat to the dominance of Rightmove and could soon be significant online rival.