The online estate agency Purplebricks (LON:PURP) made a steady rather than spectacular start to life as a stock market quoted company.
In early trade the stock, listed at 100p, nudged up to 106.5p, before settling back to just under the pound mark.
Valued at £240.3mln, the company raised £25mln via a share placing with City institutions.
One of its early backers was the small-cap guru Neil Woodford, who came in alongside former Capita boss Paul Pindar and Errol Damelin, the founder of payday lender Wonga.
Purplebricks is a hybrid – folding in the affordability of a largely web-based operation with the hands-on service of a traditional estate agent.
It has 4,300 homes for sale, and undercuts the traditional agencies by charging a flat fee of £665 plus VAT, or £965 in certain parts of London.
There are additional charges for arranging viewings or energy performance certificates.
Unlike many of its online rivals, which include eMoov, Housesimple and easy Property, Purplebricks has a network of 165 local agents who visit properties and provide valuations.
Co-founder and chief executive Michael Bruce said this morning: "Purplebricks' successful listing on AIM today represents a major milestone in the evolution of the business over the last four and a half years and is testament to the team's hard work and commitment.
“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 as well as value for all of our shareholders."
The research group Hardman & Co called Purplebricks’ business model ‘truly disruptive’.
Analyst Mike Foster pointed out that despite the firm’s ‘relative youth’ – it is a wee baby at just 18 months – it now dominates the online market with 60% of it.
“Purplebricks has energised the online agency sector doubling its share of the overall market in less than a year,” said Foster.
“This results from its first mover advantage as the only hybrid business in the market.
“With the expertise of the management team it is rewriting the rules and seems set fair to grow at a rapid pace for many years.”