More than 3m of shares have been placed in a dedicated facility established by OnTheMarket (OTM) after its initial public offering (IPO) lock-in period ended this month.
At the time of its IPO, agent shareholders were restricted from selling their shares for five years and that lock-in period ends on 9 February 2023.
OTM said in December that it has created a facility for a one-off sale, without which it is claimed that “the market price achievable by selling agent shareholders may be impacted.”
The portal announced this morning that shareholders intend to sell in aggregate 3,130,675 ordinary shares of 0.2p each in the company at 76p ordinary share.
Agents sold 1.9m shares and management shareholder Morgan Ross - OTM's product and technology director - sold 1.2m, giving a total 3.1m.
The placing shares represent approximately 4.1% of the issued share capital of OnTheMarket.
The shares are place in a dematerialised custody service called the OTM Corporate Sponsored Nominee (OTM CSN).
The shares are still owned by the agent, but the agents will be able to opt to have their shares put up for sale in a one-off placing due to be settled on 20 February 2023.
The idea is that the placing will look to identify buying demand to match aggregate selling demand and achieve the best result for selling shareholders.
If the shares don't sell they can stay within the CSN and belong to the agent who can ask Link to try and sell them later on their behalf, or they can hold them or they can transfer them out of the CSN if they wish.
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