OnTheMarket shares start trading this week at a low of 120.5p.
A fall of almost 9% on Friday took the share price down to well below its launch offer price of 165p.
There appeared to be no reason for the fall, and OTM itself has put out a steady stream of positive news since its launch on AIM on February 9, including that it has recruited 1,000 more branches since then.
It now has a market capitalisation of £85.56m, way behind its planned market cap of £200m to £250m when it announced its intention to float last August. Shares at that time were projected to trade at between £4 and £5.
By contrast, Rightmove shares ended Friday up 1.4% at 4,257p, valuing the business at the best part of £4bn – an astonishing £3,839m.
ZPG shares also edged slightly upwards to finish on Friday at just over 331p, with the company valued at almost £1.5bn (£1,449m) according to the London Stock Exchange.
Comments (12)
Let’s for a minute imagine a company letting its share price slide, which allows those with a different motive/agenda the opportunity to acquire more shares.
Let’s imagine because of their share price slide gameplan other “normal” shareholders are nervous about their diminishing share value, so they too exit, selling their shares. Let’s imagine this snowball rolling down a very long hill and at the foot there are a small group of people huddled together wearing “Gameplan” Embroidered Deerstalking Hats and Insulated Tweed Gloves because they don’t want to melt any of that large snowball when they heave it off the ground.
It’s interesting, imagination.
Moving back to reality. OnTheMarket, I wonder what the Big Shareholders Gameplan is? One thing is for sure, “normal” shareholders interests will be lying discarded down a very deep, dark hole.
Standard rate for sales and lettings is £1000 + vat
. If the money grabbing founders had created it as a not for profit portal 3 years ago and charged everyone £200 ….right move might be in trouble now.
Can I ask you what makes you think the founders were money grabbing – it’s a charge you level often with no proof or back up – for which you should be careful. None of the founders have received any money, nor will they until everyone else does, and they, like anyone else it would seem, have been hard hit by the IPO result?
One aside – no one ever seems to realise that the reason for the lower rates from ZPG and RM is precisely because of OTM – seems they can’t win wherever they turn!!
when is the last time “on the what” did any advertising for its members?
Due to On The Market returning with a better proposition. ZOOPLA AND RIGHTMOVE have started reducing their rates.
Zoopla are going down to £150 Plus VAT for the silver package and Rightmove are going down to £500 Plus VAT for brand plus. This is in the London Area.
Can other estate agents who are in charge of marketing, share what they are paying?
I wasn’t aware they had reduced prices. We’re paying Zoopla circa £250 plus VAT and we’re only a small independent. Shall be looking into that! Lettings only, London based.
Small independent paying around £1200 for RightMove lettings and sales with no addons.
Neither RM or Zoopla have a need to reduce fees, OTM are a small desperate plc with low visitor and lead numbers.
Is this genuinely true about rate reductions? Smaller agents north of the capital are really struggling with prices of £1,000 plus just for sales….so that is nearly double the reduced London rates, and their northern average fee per sale is a lot lower!
On the what?
I think the people investing are On The blardy Sniff!