Estate agency Foxtons has made its stockmarket debut after the company was valued at £649m.
It was first reported in June that Foxtons’ owner, private equity firm BC Partners, was planning the offering.
Foxtons shares opened at 230p, and on the first day of trading surged to a high of 286p. As Money Marketing went to press, the share price had fallen to 270p.
The estate agent has 44 offices, of which 42 are based in London. The Office for National Statistics revealed last week house prices in London have risen 9.7 per cent over the last year.
Foxtons represents the second major flotation by a property firm this year after Countrywide went public in March and achieved a market capitalisation of £750m with a share price of 350p.
Foxtons chief executive Michael Brown says: “We are delighted our initial public offering has been successfully received and there has been strong interest from investors. We welcome our new shareholders to Foxtons and we are looking forward to the next stage in the development of the business as a listed company.”
Coreco director Andrew Montlake says: “When all is said and done, Foxtons has developed a strong brand and obviously a profitable one. Any deal like this shows faith in our sector which is always welcome.
“With the resurging property market I think we will see a lot more deals like this taking place and more companies going public over the next couple of years.”