Zoopla Property Group Plc, owner of real estate websites Zoopla and PrimeLocation, set a price range for its IPO that could value the company at about 940 million pounds ($1.57 billion).
Zoopla will offer shares at 200 pence to 250 pence each and the valuation is based on the middle of that range, the company said in a statement today. Owner Daily Mail and General Trust Plc will sell 31 percent to 50 percent of its stake. The company won’t sell any new shares.
With property prices 3 percent below 2007 highs and more than 55 IPOs announced this year in London, Zoopla may catch the cusps of both the property and IPO waves, Bloomberg Industries said on May 27. Competitor Rightmove Plc (RMV) is down 19 percent this year, underperforming global peers and the FTSE 350 Real Estate Index.
Zoopla last month reported record levels of traffic on its websites, with 39.9 million average monthly visits as of March, up 37 percent from a year ago, as it benefits from greater home sales and a bigger audience. The U.K. housing market is getting a boost from low borrowing costs and government incentives to buyers as well as an improving economy.
The company had revenue of 38.3 million pounds in the six months through March, up 26 percent from a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization rose 26 percent to 18.7 million pounds.
To contact the editors responsible for this story: Aaron Kirchfeld at firstname.lastname@example.org Andrew Blackman, Ross Larsen