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March 10, 2006
IPO makes all the right moves for UK real estate site
Rightmove, a British online real estate ads site has just completed a successful IPO on the London Stock Exchange, raising some £76 M ($132 million), according to Reuters. Its stock price climbed 17 percent on its first day of trading after achieving 35 times oversubscription on its book. The IPO valued the company at £425M.
Reuters drew parallels with floats during the bubble.
“The high demand echoed the IPO of Lastminute.com six years ago -- Britain's most hyped Internet flotation at the time although shares in the online retailer fell below their issue price soon after listing.”--Reuters
It is true that Internet stocks have been doing well in recent IPOs on this side of the Atlantic. Interhyp, an online mortgage broker in Germany also did well. But one big difference between the bubble and now is that both of these firms were profitable and sizable in terms of sales.
One thing is for sure, its new investors didn't value Rightmmove so highly because of its whizz bang web technology.
Rightmove might offer to help find the perfect home, but its website is as quaint and old-fashioned as this country cottage. It takes way too many clicks to browse by region and there is no overview for a quick price comparison.
Read- Rightmove shares rush higher on first day
Read - Best VC exits were in Germany
Posted on March 10, 2006 04:04 PM | Posted to IPO | eCommerce | Permalink
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