OnTheMarket is set to demutualise and list on the stock market, according to Sky News.
The formal announcement is likely to be made tomorrow to the stock market.
Sky News says that Agents’ Mutual, parent company of OnTheMarket, will announce tomorrow “a radical plan to overhaul its corporate structure and raise £50m to back its expansion”.
City sources say that Zeus Capital, the investment bank, has been appointed to work on the listing.
Launched in 2015, OnTheMarket has rapidly gained market share in the cut-throat estate agency market, signing up thousands of agents across Britain.
Existing shareholders – who are estate agents – will first need to vote in favour of the demutualisation plan, said the Sky News report.
Assuming it goes ahead, the cash will be ploughed into accelerating the expansion and marketing of OTM’s operations.
Its aim is to challenge the “duopoly of Rightmove and Zoopla” by having sufficient firepower to attract and retain more estate agents, and grow traffic on its site, according to insiders.
The existing shareholders will retain a majority of the portal’s shares, aligning them with its future performance, according to the source.
OnTheMarket has roughly 5,700 estate agents and letting agents on its portal, a long way behind the numbers posted by Zoopla and Rightmove, but now with roughly a one-third share of the portal market, says the Sky News report.
EYE is due to be briefed early tomorrow morning and we will update you as soon as we can.