It now appears that OnTheMarket agents do not require to sign up to the portal for five years in order to become eligible for share distribution when the parent company floats.
The decision to float was taken earlier this month by a very substantial margin - 89 to 11 per cent of those members that voted - and this was confirmed by a court decision.
Documents presented to members at various ‘float roadshows’ over the summer appeared to suggest that for a successful Initial Public Offering, member agencies would have to exchange their interest in the current Agents Mutual company for shares in the new parent company, OnTheMarket Ltd.
To be eligible for such an exchange, it was thought that agents would have to enter a new five-year agreement, meaning they would list on OTM until 2022.
However, agents have been informed by OnTheMarket representatives that even as existing members - without a new five year deal - they would still receive shares in the new company.
Some have been told that by signing up for five years, however, agents would help OTM send a signal to wider investors that the portal has a long-term future.
OnTheMarket has said that a minority stake in a new floated company would be offered to investors, with the aim of raising £50m.
EAT asked Agents’ Mutual for comment yesterday morning: in a response this morning, a spokesperson confirmed all members would receive shares, with or without the sign-up.
“When the scheme duly became effective on 12 September 2017, following court sanction on 11 September 2017, all current members became entitled to receive shares reflecting, amongst other factors, the aggregate amount of fees they had paid in order to list on the OnTheMarket portal since its launch in January 2015. Members are also being asked to sign five year listing agreements to take effect from an IPO [initial public offering] of OnTheMarket” said the spokesperson.