Zoopla shares leap after its cut price float wins backers


Zoopla shares rose more than 4 per cent on their debut after the property website bowed to market pressure and priced its flotation lower than had been anticipated.

The company was valued at £919m as it joined the London Stock Exchange at 220p a share, in the lower half of its original 200p-250p range. However, the decision was welcomed by the City as the shares climbed to 230p, unlike those of other recent listings, such as Saga, which have flopped on debut.

The valuation puts Zoopla in line for a place in the FTSE 250. New shares were not issued in the flotation, but the selling shareholders raised about £370m from the listing. These include the website’s majority shareholder DMGT, owner of the Daily Mail, which sold 35 per cent of its stake, netting it £169m.

The estate agent Countrywide said it had sold a 2.2 per cent stake worth £19.9m but will continue to hold a 4.1 per cent stake. About a fifth of the 19,000 estate agents that list their properties on Zoopla took up its offer of a 20 per cent discount on the shares.

“This looks a decent result for DMGT in our view, given a more soggy initial public offering market,” Steve Liechti, an analyst at Investec, said. “This is not great for the bulls in our view but better than our low-end forecast,” he added.

Zoopla, which is the UK’s second largest property website, has quickly become a “must visit” site for home buyers or sellers since launching in 2008. The site carries sale prices and value estimates for every single address in the UK.

Its prospects also look good, with traffic on Zoopla’s website and mobile apps up 37 per cent in the eight months to May against a year earlier as the UK property market booms. More than half of its traffic is now on mobile.

Zoopla’s founder Alex Chesterman, who also founded the video rental company Lovefilm in 2007, will remain its chief executive. He reduced his stake in the company from about 8 per cent to 6.1 per cent in the listing, pocketing £33m.

Mr Chesterman said: “[The listing] marks an important milestone for our business following a number of years of strong growth and having built a market-leading proposition.

“We have received a significant level of institutional investor support in our business and also received strong support from our members who have also participated in our initial public offering.

“We are looking forward to life as a public company and to welcoming our new shareholders to the business.”

The IPO market has been at its busiest since 2007 in recent months with shares in Royal Mail and Foxtons rocketing on their debuts last autumn. But some investors are fretting it may have peaked and other listings have not fared so well.

Start your day with The Independent, sign up for daily news emails
election 2015The 10 best quotes of the campaign
A caravan being used as a polling station in Ford near Salisbury, during the 2010 election
election 2015The Independent's guide to get you through polling day
David Blunkett joins the Labour candidate for Redcar Anna Turley on a campaigning visit last month
voicesWhat I learnt from my years in government, by the former Home Secretary David Blunkett
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Editor-in-chief - Financial Services - City, London

£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...

Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Guru Careers: Management Accountant

£27 - 35k + Bonus + Benefits: Guru Careers: A Management Accountant is needed ...

Guru Careers: Project Manager / Business Analyst

£40-50k + Benefits.: Guru Careers: A Project Manager / Business Analyst is nee...

Day In a Page

General Election 2015: ‘We will not sit down with Nicola Sturgeon’, says Ed Balls

'We will not sit down with Nicola Sturgeon'

In an exclusive interview, Ed Balls says he won't negotiate his first Budget with SNP MPs - even if Labour need their votes to secure its passage
VE Day 70th anniversary: How ordinary Britons celebrated the end of war in Europe

How ordinary Britons celebrated VE Day

Our perception of VE Day usually involves crowds of giddy Britons casting off the shackles of war with gay abandon. The truth was more nuanced
They came in with William Caxton's printing press, but typefaces still matter in the digital age

Typefaces still matter in the digital age

A new typeface once took years to create, now thousands are available at the click of a drop-down menu. So why do most of us still rely on the old classics, asks Meg Carter?
Discovery of 'missing link' between the two main life-forms on Earth could explain evolution of animals, say scientists

'Missing link' between Earth's two life-forms found

New microbial species tells us something about our dark past, say scientists
The Pan Am Experience is a 'flight' back to the 1970s that never takes off - at least, not literally

Pan Am Experience: A 'flight' back to the 70s

Tim Walker checks in and checks out a four-hour journey with a difference
Humans aren't alone in indulging in politics - it's everywhere in the animal world

Humans aren't alone in indulging in politics

Voting, mutual back-scratching, coups and charismatic leaders - it's everywhere in the animal world
Crisp sales are in decline - but this tasty trivia might tempt back the turncoats

Crisp sales are in decline

As a nation we're filling up on popcorn and pitta chips and forsaking their potato-based predecessors
Ronald McDonald the muse? Why Banksy, Ron English and Keith Coventry are lovin' Maccy D's

Ronald McDonald the muse

A new wave of artists is taking inspiration from the fast food chain
13 best picnic blankets

13 best picnic blankets

Dine al fresco without the grass stains and damp bottoms with something from our pick of picnic rugs
Barcelona 3 Bayern Munich 0 player ratings: Lionel Messi scores twice - but does he score highest in our ratings?

Barcelona vs Bayern Munich player ratings

Lionel Messi scores twice - but does he score highest in our ratings?
Martin Guptill: Explosive New Zealand batsman who sets the range for Kiwis' big guns

Explosive batsman who sets the range for Kiwis' big guns

Martin Guptill has smashed early runs for Derbyshire and tells Richard Edwards to expect more from the 'freakish' Brendon McCullum and his buoyant team during their tour of England
General Election 2015: Ed Miliband's unlikely journey from hapless geek to heart-throb

Miliband's unlikely journey from hapless geek to heart-throb

He was meant to be Labour's biggest handicap - but has become almost an asset
General Election 2015: A guide to the smaller parties, from the the National Health Action Party to the Church of the Militant Elvis Party

On the margins

From Militant Elvis to Women's Equality: a guide to the underdogs standing in the election
Amr Darrag: Ex-Muslim Brotherhood minister in exile still believes Egypt's military regime can be replaced with 'moderate' Islamic rule

'This is the battle of young Egypt for the future of our country'

Ex-Muslim Brotherhood minister Amr Darrag still believes the opposition can rid Egypt of its military regime and replace it with 'moderate' Islamic rule, he tells Robert Fisk
Why patients must rely less on doctors: Improving our own health is the 'blockbuster drug of the century'

Why patients must rely less on doctors

Improving our own health is the 'blockbuster drug of the century'