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.”