Zoopla has set its launch share price at 220p, giving a total market capitalisation of £918.8m.
The price is in the middle of the range first mooted, of 200p to 250p per share. However, the share price immediately went above the 220p mark.
Just 20% of estate agents and developers who advertise on Zoopla have taken up the discounted share price offer – with the majority passing up on the chance to make a quick 20% profit by “flipping” their shares, or to buy another tranche of shares at the same 20% discount next year.
However, Zoopla chief executive Alex Chesterman said he was “delighted” by the uptake.
He said: “We have been delighted with the strong interest and take up by our members to purchase shares in ZPG.
“The offer was designed to reward our loyal members for their support and we are happy to have been able to extend the discounted offer to our members and to welcome them as shareholders in our business.”
The Daily Mail and General Trust will make about £190m out of the flotation, disposing of up to 40% of its holding. It will continue to hold a stake of at least 31%.
LSL – parent company of Reeds Rains and Your Move – said this morning that it will continue to hold 2.6% of Zoopla after selling 8,890,014 Zoopla ordinary shares, raising £19.5m.
Countrywide will raise £19.9m through selling part of its holding.
LSL said that its board has decided that it will return to shareholders all of the proceeds from the sale of Zoopla ordinary shares, after the deduction of costs and applicable taxes (including corporation tax). Further details will be provided at the time of LSL’s interim results on August 5.
It is expected that LSL will make this return to shareholders in September.
Countrywide said it is considering the “appropriate” use of the proceeds.
Unofficial or ‘grey market’ trading in Zoopla shares started this morning, with the price trading above 230p, and official trading begins on Monday.
Comments (6)
I am sure the reason that only 20% of agents took up the offer was the short time frame. I did not receive my letter until Thursday and when I got around to dealing with it on Friday, saw that the application must be received in the post by Friday at 5pm, so too late. There was no phone number and my email did not get replied to until Monday, by which time it was too late. I have bought the whole £2,500. I wonder how many other agents missed out in this way.
I'll be one of the first to sell my shares on Monday morning…..especially after seeing the new e moov ad this afternoon…..totally amazed by Zoopla on their aparent tie in with e moov…..will be nice to make a few thousand of the back of them before immediately dumping them….It seems they have made their first move towards backing very low fee online agents…..
if you havent seen the e moov tv ad I suggest you watch it NOW….It takes the portal debate to the next level.
For many, the money made from the "quick flip" of Zoopla shares will cover the cost for joining AM as a gold member.
Caching !
Sell sell sell.
Absolutely. But only one in five agents bought the shares and can make a tidy 20% turn on them.
I never thought I would see the day when estate agents turned down the chance to make a quick buck.
However, like Alex Chesterman, I am "delighted" to see it.