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EYE NEWSFLASH: OnTheMarket raises £30m to start trading on stock market

ONE UTILITY BILL NS

The board of OnTheMarket has announced that it expects to start trading on the stock market shortly.

It has conditionally raised £30m through the placing of new ordinary shares, and expects that dealing in its shares on AIM will start on February 9.

It expects agents to own more than 70% of the issued share capital, and that the company’s market capitalisation on admission will be £100m.

In a statement this morning it emphasised:

“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.

“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.

“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, 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.”

The statement continues to say:

“Other key elements of the strategy are:

  • increasing the marketing budget to up to £25m per annum for the first two years to raise the profile of the OnTheMarket.com brand and continue to build the consumer audience;
  • investing to scale up the company’s infrastructure, especially its sales and customer relationship management organisation and its technology development;
  • growing substantially the core customer base of estate and lettings agents and other property advertisers using the portal; and
  • accelerating agent recruitment and broadening agent backing with the targeted use of equity incentivisation for key agents committing to support the portal with long term listing agreements.”
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BELVOIRHamilton Fraser NSNES NSON THE MARKETViewber 1 NSMY DEPOSITSTPO CONF NSNFOPP SkyscraperTLI LL INS NSjobs board nsArena Push news story pages

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Source:: EYE NEWSFLASH: OnTheMarket raises £30m to start trading on stock market