Foxton float set to value estate agent at £650m

City A.M. Reporter
THE PLANNED stock market flotation of real estate agent Foxtons is over-subscribed, a source close to the process said yesterday, indicating interest in the offering may be outweighing any concerns that the London property market is looking overheated.

The flotation of the London-focused group, due to happen later this month, has a price range of between 190p and 230p, which would give it a stock market value of between £550m and £650m.

Foxtons is the latest housing-related company to undertake an initial public stock offering (IPO) on the back of Britain’s recovering housing market.

Yet some investors argue the housing market in London may run out of steam and the company is arriving late to a party that began when UK-wide estate agent Countrywide and housebuilder Crest Nicholson floated earlier this year.

“Foxtons gives you exposure to London. But arguably that story has already happened, the story is now outside London,” said Derek Mitchell, senior UK equities manager at Royal London Asset Management.

Foxtons and its owner BC Partners declined to comment.