3rd Dec 2015 08:42
LONDON (Alliance News) - Online estate agency Purplebricks Group PLC on Thursday said it will float in London later this month and was joined in announcing its intention by Chinese agriculture firm Wanxiang Group Holding PLC, while smartphone software security company Defenx PLC started trading on AIM.
Purplebricks said it has conditionally raised GBP58.1 million for its upcoming float on AIM, with the sale of 58.1 million shares at 100.00 pence per share, of which 25 million are new and 33 million existing shares. As a result, GBP25.0 million of the proceeds will go to the company, with the balance to go to its selling shareholders.
Upon admission, Purplebricks' market capitalisation will be around GBP240.3 million. It expects trading in its shares to start on December 17. Zeus Capital is its nominated adviser and broker.
The company launched regionally in the UK in April 2014 and has grown rapidly since to now operate a nationwide network of online estate agents. The group said it charges significantly lower fees to house sellers, with an average fee of GBP1,080 per sale, compared to a national average of around GBP4,000.
Purplebricks said trading since the end of its financial year in April has continued to be encouraging and, in November, it launched in Scotland, meaning is now offers coverage of the entire UK.
It intends to use the proceeds from the placing to back expansion in London and Scotland, boost brand awareness and invest in its technology and software platform.
"The business model is disruptive and has allowed us to establish Purplebricks as a nationwide agency at a lower investment than a traditional agency, with a more flexible cost structure which supports the sustainability of our pricing strategy," said Michael Bruce, the company's chief executive.
"The funds raised will allow us to further deepen our presence across the UK through additional investment in people, technology, infrastructure and marketing to deliver our ambitious growth plans and create value for our shareholders," Bruce added.
Also announcing plans to launch an IPO in London was Wanxiang Group, a Chinese agriculture company focused on Camellia oil tree planting. After floating on London's Main Market, which it intends to do by the end of 2016, the group intends to increase its plantation base and install new oil production lines.
Ahead of these two in the queue was Defenx, which makes security software products for mobile devices, PCs and network security markets. Shares in the company started trading on Thursday, after it raised GBP2.1 million from the issue of 1.4 million shares at 148.00p per share. Its shares dipped slightly upon admission to AIM, down to 147.00p early Thursday.
The group's market capitalisation upon admission was GBP9.0 million, and it intends to use the proceeds from the placing to fund the development of its Windows 10 app, develop its Mobile Security Suite products for Android and Apple iOS platforms and broaden its overall product offering.
"I believe that, given the rising use of smart devices for day to day financial and commercial transactions, 2015 will be seen as year zero in the global smart phone security software market. Defenx is well placed to capitalise on its position in the security solutions market, and we look forward to a successful future as an AIM listed company and delivering value for our shareholders," said Andrea Stecconi, Defenx's chief executive.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
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