agents mutual flotation
-
Latest property news
OnTheMarket flotation confirmed alongside sweeteners for agents to sign long-term deals
The long-awaited OnTheMarket flotation on the Alternative Investment Market (AIM) is to proceed, it has been confirmed by parent organisation Agents’ Mutual. It is now four months since the vote to demutualise Agents Mutual which was to be followed by the creation of a new company OnTheMarket plc prior to an Initial Public Offering (IPO) on AIM. Agents Mutual has yet to announce the new company or IPO, but has revealed that it will introduce “appropriate incentives” to persuade new members to commit to five-year deals with OTM. This will include giving share options to “selected” agents joining the portal if they commit to long-term listings agreement. OnTheMarket flotation But agents who receive equity in OTM following the flotation are to be prevented from cashing in their shares too soon to “align their interests as shareholders with the success of the Group”. OTM has already begun the process of securing five-year deals in return for promises of shares in the company including, most recently, deals announced with Arun Estates, Chancellors and Hunters. But, as previously announced, the £50m it hopes to raise from the City will be spent on marketing and PR to drive traffic to the site and to…
Read More » -
Latest property news
OnTheMarket agents vote overwhelmingly to demutualise and float
OnTheMarket is to demutualise and float on the stock market following a vote by its agent members. It is also to drop its controversial ‘one other portal rule’ and will now attempt to raise £50m from City investors. Nearly 90% of agent members of the website’s operator Agents’ Mutual voted to convert their existing membership interests into shares in a new company called OnTheMarket Ltd. Agents’ Mutual says 70% of members voted in person at the meeting in London yesterday or by proxy. After the vote is approved by a court hearing early week the demutualisation will then proceed on 12th September, and following an initial IPO on the Alternative Investment Market (AIM) it is expected that some £50m will be raised by offering investors a minority stake in the new business. Advertising campaign This will value OnTheMarket at between £200 and £250 million. The money raise is to be used to take on Rightmove and Zoopla with a huge national advertising campaign on TV, digital and print media as well as significant radio and billboard activity. “I am very pleased at such a resounding demonstration of broad Member support for our strategic proposals for the business,” says Ian Springett,…
Read More » -
Latest property news
OnTheMarket to end mutual status and float on AIM
The parent company of OnTheMarket.com, Agents’ Mutual, is to raise £50m by floating on the Alternative Investment Market (AIM) of the London Stock Exchange 30 months after the mutually-owned property portal launched. The flotation will value OnTheMarket at between £200 million and £250 million, a sixth the size of nearest rival Zoopla. Much of the money raised from the City will be spent on a huge TV, radio, print and digital advertising campaign to raise awareness among consumers and, no doubt, stop agents jumping ship back to Zoopla. OnTheMarket’s flotation will also require existing agents who list on the site to convert their membership into ordinary shares in the new company, and commit to a further five year agreement to list their properties on OnTheMarket.com. “This is the beginning of a very exicting new chapter in our development,” says Agents Mutual Chief Executive Ian Springett (pictured, left). “For consumer and agents alike we are committed to creating a genuine agent-controlled alternative challenger business and brand to the two leading incumbent portals.” A minority stake will be offered to investors as part of the Initial Public Offering (IPO) of new equity which will be used to give OnTheMarket the sort of…
Read More »