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
Arts and Entertainment
Books should be for everyone, says Els, 8. Publisher Scholastic now agrees
booksAn eight-year-old saw a pirate book was ‘for boys’ and took on the publishers
Life and Style
Mary Beard received abuse after speaking positively on 'Question Time' about immigrant workers: 'When people say ridiculous, untrue and hurtful things, then I think you should call them out'
tech
Life and Style
Most mail-order brides are thought to come from Thailand, the Philippines and Romania
life
News
i100
Life and Style
tech
Voices
Margaret Thatcher, with her director of publicity Sir Gordon Reece, who helped her and the Tory Party to victory in 1979
voicesThe subject is being celebrated by the V&A museum, triggering some happy memories for former PR man DJ Taylor
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Business Analyst - Financial Services - City, London

£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...

SThree: Trainee Recruitment Consultant

£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...

Recruitment Genius: Administrator - IFA Based

£22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...

Day In a Page

General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband

Chuka Umunna: A virus of racism runs through Ukip

The shadow business secretary on the benefits of immigration, humility – and his leader Ed Miliband
Yemen crisis: This exotic war will soon become Europe's problem

Yemen's exotic war will soon affect Europe

Terrorism and boatloads of desperate migrants will be the outcome of the Saudi air campaign, says Patrick Cockburn
Marginal Streets project aims to document voters in the run-up to the General Election

Marginal Streets project documents voters

Independent photographers Joseph Fox and Orlando Gili are uploading two portraits of constituents to their website for each day of the campaign
Game of Thrones: Visit the real-life kingdom of Westeros to see where violent history ends and telly tourism begins

The real-life kingdom of Westeros

Is there something a little uncomfortable about Game of Thrones shooting in Northern Ireland?
How to survive a social-media mauling, by the tough women of Twitter

How to survive a Twitter mauling

Mary Beard, Caroline Criado-Perez, Louise Mensch, Bunny La Roche and Courtney Barrasford reveal how to trounce the trolls
Gallipoli centenary: At dawn, the young remember the young who perished in one of the First World War's bloodiest battles

At dawn, the young remember the young

A century ago, soldiers of the Empire – many no more than boys – spilt on to Gallipoli’s beaches. On this 100th Anzac Day, there are personal, poetic tributes to their sacrifice
Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves

Follow the money as never before

Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves, reports Rupert Cornwell
Samuel West interview: The actor and director on austerity, unionisation, and not mentioning his famous parents

Samuel West interview

The actor and director on austerity, unionisation, and not mentioning his famous parents
General Election 2015: Imagine if the leading political parties were fashion labels

Imagine if the leading political parties were fashion labels

Fashion editor, Alexander Fury, on what the leaders' appearances tell us about them
Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

The architect of the HeForShe movement and head of UN Women on the world's failure to combat domestic violence
Public relations as 'art'? Surely not

Confessions of a former PR man

The 'art' of public relations is being celebrated by the V&A museum, triggering some happy memories for DJ Taylor
Bill Granger recipes: Our chef succumbs to his sugar cravings with super-luxurious sweet treats

Bill Granger's luxurious sweet treats

Our chef loves to stop for 30 minutes to catch up on the day's gossip, while nibbling on something sweet
London Marathon 2015: Paula Radcliffe and the mother of all goodbyes

The mother of all goodbyes

Paula Radcliffe's farewell to the London Marathon will be a family affair
Everton vs Manchester United: Steven Naismith demands 'better' if Toffees are to upset the odds against United

Steven Naismith: 'We know we must do better'

The Everton forward explains the reasons behind club's decline this season
Arsenal vs Chelsea: Praise to Arsene Wenger for having the courage of his convictions

Michael Calvin's Last Word

Praise to Wenger for having the courage of his convictions