Countrywide launched with a bang on the stock market this morning, with trading racing away beyond expectations.
Within 20 minutes of trading starting at 8am, over eight million shares had been traded at around 392p – well above the price that had been set. Within the first two hours – by 10am this morning – over 18 million shares had changed hands at 392p.
The rip-roaring start was maintained. By 2pm today, 30 million shares had been traded in Countrywide, with the share price edging up towards the £4 mark.
The flotation, and the market’s continuing reaction to it, will say a lot about how the City views property and mortgage businesses, and the outlook for the housing market.
The firm – Britain’s biggest estate agency and mortgage group, which reckons to sell one home in 11 – had already expected to float at the top end of the market, with shares priced at 350p. This was at the absolute top end of the original range suggested of 260p to 350p, but this morning's trading opened above 350p, at 385p per share.
Countrywide expects to be valued at £750m and plans to raise £200m from the sale of new shares. It will use the money to repay debt and to expand.
Grenville Turner, group chief executive officer, said: “I am delighted by the very positive response we received from investors over the past few weeks which is recognition of the opportunity Countrywide has as the UK’s largest integrated property services group.
“I would like to thank all those – colleagues, partners, clients and customers – whose professionalism, effort and commitment have brought us to where we are today. Countrywide will continue to focus on delivering results, developing innovative and differentiated products and capitalising on our unique proposition.”
The company was previously listed on the stock exchange between 1986 and 2007, when it was sold to US private equity firm Apollo at the top end of the market. Oaktree, which is behind today’s float, took control of it in 2009.
Comments
Good News for Countrywide!