Foxtons reveals float plans

Estate agent Foxtons has announced plans to raise £55 million through a float on the stock market as it looks to ride a recovery in Britain's housing market.

The London-focused property agent, majority owned by private equity firm BC Partners, said the offer would comprise a sale of new shares as well as a partial share sale by a BC Partners-controlled unit. Foxtons's executive directors will also be allowed to sell shares.

Proceeds from the sale of new shares will be used to repay in full its outstanding debt and 50% of the company's shares would be in free float following the expected September listing, it said.

The flotation, following a successful stock market debut by Britain's largest estate agent Countrywide earlier this year, comes as government schemes to free mortgage lending and boost buyer confidence fuel a rise in housing transactions.

In July, the British Bankers Association said banks approved the highest number of mortgages since January 2012.

Foxtons focuses on property sales of between £200,000 and £1.4 million, a price range that made up 78% of London sales in 2012.

It said its first-half revenue of £62.6 million was 10.5% higher than the same period last year while adjusted earnings before interest, tax, depreciation and amortization rose 14.3%.

Foxtons said it had appointed Credit Suisse and Numis Securities as joint book runners, and Canaccord Genuity as co-lead manager. N M Rothschild & Sons is acting as financial adviser.