The first online agency to list on the UK stock market - Purplebricks - has enjoyed a volatile first day of trading.
The stock listed on the Alternative Investment Market at 100p but reached as high as 106.5p yesterday morning within a few minutes of opening. It then dropped to below 95p, spent the afternoon moving listlessly between 90 and 95, before closing the day at 93p - down seven per cent on the day.
Even so, the agency's chief executive Michael Bruce is undeterred. “Purplebricks’ successful listing on AIM 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” he says.
“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” he says.
The company currently has 4,300 homes for sale, tended by a network of 165 local agents who visit properties and provide valuations - giving it a ‘hybrid’ status according to some analysts.
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So Purplebricks.......a glance at their latest accounts shows a loss of around £5.5m after sales of nearly £3.4m. Last year losses were over £2m. That is one upside down business and I cant see how they can possibly turn those figures around to be profitable. Seems to me like the sale of shares is going to be used to fill a very dark hole.
Indeed. Their whole model is completely unsustainable.
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