Agents who bought shares in Zoopla this time a year ago at a 20% discount have seen a return of over 55% on their investment.
The agents were all given the opportunity when Zoopla floated on the stock market.
Now, a year later, they can purchase the same number of shares as they did then, at the same fixed price of £1.76 per share, allowing them to score an instant profit of over £1,000 per office, based on the current share price.
In fact, the agents who bought last year were quids in on the first day of Zoopla trading as a public company, with the starting share price being 230p.
On float day, the share price jumped 5%.
However, in January, Zoopla’s shares had slumped to below the price agents paid – reaching a bottom of 150.8p. Yesterday, the shares closed at 275p.
Last year £9.2m of ZPG shares were purchased by around 4,000 members in the IPO at the discount which equated to a more than £1.8m giveaway. Based on the current share price, if all eligible members take up their anniversary entitlement this will equate to a further giveaway by ZPG of almost £3.7m to reward these members for their ongoing loyalty.
ZPG will be communicating directly in the coming days to all eligible members who took up the member offer last year with details of how to apply for the discounted anniversary offer. The member offer, including the discounted anniversary offer, is funded by shares set aside by pre-IPO shareholders and is therefore not dilutive to existing shareholders.
Alex Chesterman, CEO of Zoopla, said: “At the time of our IPO last year we were happy to be able to offer our agent members the opportunity to buy shares at a discounted price and become shareholders and were delighted with the take-up by our members.
“Those who took us up on the offer have made a healthy profit and over 90% of them remain members today and are eligible to buy more shares at £1.76 as part of the anniversary offer.
“It is great that we have been able to reward these members for their loyalty with over £5.5m over the last year.”
* Separately, it has been announced that ZPG chairman Mike Evans is stepping down as a non-executive director of insurance group esure, which owns Gocompare.
The move follows Zoopla’s completed purchase of uSwitch this week. A statement by esure said it was recognised there could be potential conflicts of interest.
Evans will quit as soon as a successor is appointed, and will meanwhile excuse himself from all board discussions to do with Gocompare.
Uswitch:
Mike Evans should have stepped down as talks where ongoing , during acquisition ,not after the acquisition has been completed . excuses.. excuses…
stepping down after the deals are signed off ….
how convenient.
don’t forget life Mikes also non exec of life pensions Chesnara plc
ZPG board members have so many finger and thumbs in all the pies
looks like mike would fit in nicely on countdown in the numbers round ….
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Where’s GPL when you need her?
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GPL busy in Edinburgh today working, and on 2 Wheels!…. not much time to engage here…..
However…..?
STOP PRESS! Zzzzzzooooooooplaaaaaaaa and their Man Chester apparently offering FREE CREME EGG to every members who remains with Snooooooozplaaaaaa….. if the CREME EGG Stockmarket performs as Man Chester predicts this year’s FREE CREME EGG will be worth 2 CREME EGGS next year!
Wow!…. who would have thought!?
…..and on the Looooooozooooooooplaaaaaaaaa Gift Conveyor Belt today….. cuddly toy, set of casserole dishes….
Who cares?
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Who cares about return on investment and, essesntially, free money?
There is no way you’re an estate agent!
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