Foxtons Group Plc, a real estate broker based in London, said it expects to raise 390 million pounds ($626 million) in an initial public offering today.
The sale of 169.4 million shares at 230 pence each will give Foxtons a market value of 649 million pounds, the company said in a statement today. The sale includes a primary offering of 55 million pounds and 335 million pounds of secondary sales by shareholders, directors and employees.
Foxtons is benefiting from London’s booming housing market, where the average price of a home climbed 9.7 percent during the year to July, according to the U.K’s Office for National Statistics. The broker has 40 of its 42 branches in London and sells homes mostly at prices from 200,000 pounds to 1.4 million pounds, the company said on Aug. 27.
Foxtons shares begin conditional trading on the London Stock Exchange today. BC Partners bought the company, founded by Jon Hunt in 1981, for about 390 million pounds in May 2007.