DMGT, Countrywide and LSL to cash in on Zoopla IPO at 220p

18th Jun 2014 07:06

Countrywide and LSL Property Services are set to raise nearly £20m each from the sale of shares in Zoopla's initial public offering (IPO) on Wednesday, while Daily Mail & General Trust could make as much as £190m.Zoopla has set its offer price at 220p per share, in between the targeted range of 200-250p, giving the online estate agent portal a market capitalisation of around £919m. The shares quickly rose in first conditional dealings and were 228.63p by 10:30 on Wednesday. Some 159.98m shares are up for grabs in the offer, representing 38.3% of Zoopla's issued share capital, excluding an over-allotment option."We are delighted with our successful listing on the London Stock Exchange. Today's announcement marks an important milestone for our business following a number of years of strong growth and having built a market-leading proposition," said Alex Chesterman, founder and Chief Executive Officer of Zoopla Property Group.He said the company has received a "significant level of institutional investor support".Publisher Daily Mail & General Trust said it would participate in the IPO and sell a maximum of two-fifths of its current 52.1% stake in Zoopla, retaining at least a 31% holding. The most it could receive would be £190m.Estate agent chain Countrywide said that it is to sell a 2.2% stake to generate gross proceeds of £19.9m, leaving it with a 4.1% holding. The company said it is "considering the appropriate use of the proceeds".Meanwhile, sector peer LSL Property Services is offloading a 2.1% interest for £19.5m, leaving it with a 2.6% stake. Proceeds, after the deduction of costs and taxes, will be returned to shareholders, it said.BC