Foxtons, which has its full listing on the stock market today, has made its chief executive a rich man.
Michael Brown made £52.2m by reducing his stake in the company from 17.6% to 8.8% in Friday’s over-subscribed public offering.
Brown had 45.5m shares before the listing. He sold 22.7m at the issue price of £2.30.
He is prevented from selling any more shares for the next 12 months under a lock-up agreement.
Foxtons’ previous majority owners, BC Partners, reduced its stake from 75% to 28.3%. With an “over-allotment” option now exercised, this reduces to 22.3%.
Although Foxtons’ shares soared on their first day of conditional trading, not everyone was impressed.
The Questor column in the Telegraph said the shares looked expensive in relation to forecast earnings, that the housing market looked bubbly, and that Foxtons’ shares were priced right at the top of the bubble. Its editor John Ficenec urged: “Avoid.”
But yesterday, other property shares appear to have risen in line with the Foxtons success story as Rightmove and Savills saw big rises.
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Comments
Good for him, hes banked a profit and its safe.
You don't make or lose money until you sell
Remember the dot com wonder wealth?
If the admirable Mr Brown has sold stock, then he will have had a very good reason for doing so. He is an immensely impressive and clever chap and the brain behind Foxtons success.
Was up 16% in early trading, so CEO did himself out of £8.35m.
Zoopla is the one to buy share in!