Zoopla to test the market in £1bn float
Friday 06 June 2014
Zoopla yesterday moved a step closer to a near £1bn stock market valuation by setting a price range for the shares in what will be a test of investor appetite after several other lacklustre floats.
The online property advertising group's shares will be valued between 200p and 250p in the initial public offering, making Zoopla worth £940m at the mid-range when it begins trading around June 24.
However, the float market showed fresh signs of fatigue when OneSavings floated yesterday at 170p – at the bottom of expectations – after the fledgling bank had earlier set a share price between 170p and 225p.
Over-50s group Saga also struggled last week on its debut at 185p — at the low end of its target of 185p to 245p.
Zoopla chief executive Alex Chesterman said it has seen a "strong level of investor interest" since announcing its float.
Traffic on Zoopla's website and mobile apps is 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.
Daily Mail and General Trust holds almost 53 per cent of Zoopla and is set to land a windfall worth as much as £500m.
DMGT invested only around £80m in Zoopla, the second biggest player in online property advertising in Britain behind Rightmove.
Broker Liberum Capital said the £940m valuation was slightly below its £1bn estimate.
The IPO market has been at its busiest since 2007, with shares in Royal Mail and Foxtons rocketing on their debuts last autumn, but some investors are fretting it may have peaked.
Saga shares, up 2p yesterday at 174.5p, remain below their offer price. OneSavings climbed 5.9p to 175.9p on its debut.
Another float could be in the pipeline as EE, Britain's biggest mobile company, said it wants to revisit plans for an IPO after the summer.
Gervais Pellissier, deputy chief executive of Orange, the co-owner of EE, admitted that it had had "difficulty" persuading investors that the company is a "growth story" amid declining telecom revenues.
- 1 BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
- 2 Number of young homeless people in Britain is 'more than three times the official figures'
- 3 Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
- 4 The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
- 5 Swedish minister gives strongest case yet on why EU should stop turning away asylum seekers
BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
Isis propaganda video shows 25 Syrian soldiers executed by teenage militants in Palmyra
Number of young homeless people in Britain is 'more than three times the official figures'
Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
More Britons believe that multiculturalism makes the country worse - not better, says poll
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...