London Stock Exchange welcomes OnTheMarket plc to AIM
London Stock Exchange today welcomes OnTheMarket plc, the agent-backed company which operates the OnTheMarket.com property portal, to trading on the AIM market.
OnTheMarket plc has joined the market today with an initial market capitalisation of £100 million, following a fundraise of £30 million.
The key proposition of the business remains the creation of an agent-backed, full-scale property portal to disrupt what is otherwise a duopoly of Rightmove and Zoopla by offering a premier search experience to consumers whilst charging sustainably fair prices to agents.
OnTheMarket is the third biggest UK residential property portal provider in terms of traffic and has, with backing from its agent owners, developed unique sources of competitive advantage such as the "New and Exclusive" property listings. The Board believes that the IPO will provide the opportunity for a transformational step-change in the portal's position and for the development of new consumer and agent products and services and the targeting of revenues from new segments of the property market and new strategic partnerships.
Agents provide the majority of income for the property portals and also supply the majority of their most valuable content - the property listings. As a portal with significant agent support, with agents owning approximately 70 per cent of the issued capital at Admission, the Directors believe OnTheMarket.com is uniquely positioned to create an alternative to the leading incumbent portals and to provide an opportunity for a broad base of agents to participate in the equity value of their own portal.
From Admission, the Directors believe the OnTheMarket portal will have over 5,500 branches representing around a third of the total UK residential property listings.
Ian Springett, Chief Executive Officer of OnTheMarket plc, said:
"We are pleased to have secured the backing of such a high-quality investor base and are excited about the opportunities ahead. We believe that the new capital, together with our ongoing revenues, will support our strategy to build a strong agent-backed challenger to the incumbent portals. We intend rapidly to extend our customer base of estate and lettings agents, remaining committed to our core principles of offering sustainably fair prices for property advertisers and creating a premier search service for the most active property-seekers. This IPO will enable us to implement our marketing plans to build brand awareness and portal usage as well as to invest to scale up the supporting organisation and infrastructure to the benefit of consumers, agents and investors."
Key advisers on the Placing and Admission included Zeus Capital as Nominated Adviser and Broker, RSM UK Audit LLP as Auditors, RSM Corporate Finance as Reporting Accountants, Eversheds Sutherland (International) LLP as Solicitors to the Company, DLA Piper UK LLP as Solicitors to the Nominated Adviser and Broker, Link Market Services Limited as Registrars, and TB Cardew as Financial PR adviser.