OnTheMarket seeks approval for share capital overhaul

OnTheMarket is seeking shareholder approval for a proposed cancellation of capital. 

The portal said in a stockmarket update this morning that this move would create additional reserves that it could then use to introduce a share buyback programme or to pay dividends to shareholders. 

It has called for a general meeting to be held on 26 May where shareholders can consider the proposals. 

Agents hold approximately 60% of OnTheMarket’s shares. 

Jason Tebb, chief executive of OnTheMarket, said: “In 2014 agents began investing with loan notes and pre-subscription fees to build their own portal in order to share the rewards of its future success.  

“Over the past few years, we’ve seen OnTheMarket go from strength to strength with the launch of our new website, new valuation driving products and new commercial partnerships. We’re now exploring the next steps required to build on this momentum and realise those rewards for our shareholders. 

“We remain committed to the provision of a proposition differentiated by agent ownership and this is another major step on that journey. 

 “We’re continuing to evolve the business to support our long-term aim of increasing the value we offer our customers, in line with our strategy of building a differentiated, technology-enabled property business. We remain committed to keeping our listing fees fair and sustainable, whilst working to create value which, as owners, our shareholder agents can share in.”