City licks its lips as Purplebricks gets closer to flotation

Online estate agent Purplebricks is to make a final decision on a stock market flotation within weeks, although the share sale is unlikely to take place before the election. The firm is pencilling in a london marketing launch on May 1.

It is usual for the actual flotation to take place within a month of an announcement of a float.

According to the London Standard, the firm has chosen Canaccord Genuity as its advisers to take the firm to market.

One source told the Standard: “There’s a lot of appetite in the City for this.”

The story also says that since launch, Purplebricks has sold more than 2,000 properties – 98% at the asking price or more.

Purplebricks, which launched last April, has the backing of investment fund guru Neil Woodford who pumped in £7m last year.

The business — which allows owners to sell their properties for a flat fee of £665 plus VAT– was set up by brothers Michael and Kenny Bruce, who ran Burchell Edwards before it was sold in 2011.

Sources told the Standard that, at its current pace, Purplebricks could handle twice as many transactions as Foxtons this year. It is operating in about half the country, but the paper says a full national roll-out “is on the cards before July”.

Yesterday, Purplebricks had 2,286 sales properties listed on its site, including those sold subject to contract, and 383 rental properties, including Lets Agreed.

Purplebricks joins Hunters, another agent which announced its intention to list last month, as a stock market hopeful.

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5 Comments

  1. GregWood

    I’m guessing theses ‘sources’ work for Purplebricks….’Sources told the Standard that, at its current pace, Purplebricks could handle twice as many transactions as Foxtons this year’.

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  2. GPL

    Seems you get what you pay for as a customer… cheap fee reflects that your property sells for less than a professional High Street Estate Agency…. save hundreds, lose thousands?!

    Contrast that with the business owners/shareholders cashing in! Loverly Jubberly days for Arthur DaleyBricks… as he drives off in his Purple Reliant Robin full of loverly PurpleCash!

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  3. RealAgent

    I loved the comparison with Foxtons who I saw revenue of £143m last year, Purple Bricks what £1.5m perhaps?! Bit like me saying I scored as many goals in my weekly 7-a-side as Wayne Rooney did this season!

     

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  4. Woodentop

    “The story also says that since launch, Purplebricks has sold more than 2,000 properties – 98% at the asking price or more”. That can only lead to under valuing/selling vendors properties, MLR concerns…… what an opportunity for their competitors.

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  5. wilko

    I’d rather buy Zoopla shares!

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