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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
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Go to Proactive UK

Real Estate

OnTheMarket to target Zoopla and Rightmove after AIM listing

A placing has raised £30mln to fund an increase in the marketing budget

A rival to online estate agents Zoopla and Rightmove will join AIM next month when property portal OnThe Market PLC (LON:OTMP) lists on the junior market.

Ian Springett, chief executive, said Rightmove and Zoopla run a duopoly that is ripe for disruption.

READ: Brokers like the look of Zoopla’s latest acquisition

OnTheMarket will offer a full-scale property search service and offer ‘fairer prices’ to agents, he added.

A placing has raised £30mln to fund an increase in the marketing budget to £25mln in each of the next two years and a step-up in agent recruitment.

OnTheMarket claims 5,500 agents already, accounting for a third of all property listings.

“Agents provide the majority of income for the property portals and also supply the majority of their most valuable content - the property listings.

“As a portal with significant agent support, the directors believe OnTheMarket.com is uniquely positioned to create an alternative to the leading incumbent portals.”

READ: Property portal OnTheMarket looks to expand with AIM float

Dealings start February 9, with the placing priced at 165p.

Estate agents will own more than 70%, with the company valued at more than £100mln.

Springett added: "We intend rapidly to extend our customer base of estate and lettings agents. The IPO will enable us to implement our marketing plans to build brand awareness.”

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