News Column

Zoopla looks to £1bn valuation in share issue

June 6, 2014

MICHAEL BOW



ONLINE property website Zoopla yesterday gave an indicative price range of 200p to 250p for its impending share issue - giving the firm a valuation of between £833m and £1bn.


Investors in the business, which says it has about 40m visitors per month, are expected to sell between one third and a half of the business to public investors in the offering, which will price on 19 June.


Zoopla's founder and chief executive, Alex Chesterman, said the price reflected the "strong" level of interest in the business from investors.


New issues have been undermined by a spate of newly listed companies falling below their issue price.


Numerous shareholders, including the firm's principal owner Daily Mail and General Trust which has a 52.6 per cent stake, are expected to cash in their stakes through the sale.


A host of other investors, including Atlas Ventures Countrywide, LSL Property, Connells and Octopus Zenith, are also expected to sell.


Chesterton and co-founder Simon Kain will be subject to a 12 month lock-up period on the shares, which are due to start trading 24 June.


BEHIND THE DEAL JEFFERIES HOARE GOVETT | PAUL NICHOLLS 1 Nicholls is chairman of Jefferies' UK broking arm and has helped turn in the firm into a top five player in the FTSE 250 2 He took up the role following Jefferies' takeover of Hoare Govett from RBS in 2012. He was previously chief executive of the division after taking over in 2006, joining from Credit Suisse 3 Nicholls is one of the most experienced brokers in the City with more than 30 years' of experience under his belt, having worked at James Capel and Rowe & Pitman Also advising...


Nicholls is joined by Ben Bailey from Jefferies, which is acting as joint global co-ordinators, joint sponsors and joint bookrunners. Credit Suisse holds a similar role, with Gillian Sheldon and Tristan Lovegrove working on the deal. Co-lead manager is Canaccord Genuity'sRoger Lambert and Piers Coombs.


MICHAEL BOW


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Source: City A.M. (UK)


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