OnTheMarket takes on Zoopla with float plan

Rightmove and Zoopla owner ZPG will soon face a new listed rival after agent-owned OnTheMarket today announced plans for a float valuing the firm at up to £250 million.

The listing represents a dramatic change of direction for the business, abandoning the mutual model which sees the business currently jointly owned by Agents’ Mutual, whose members include Savills, Knight Frank, Strutt & Parker and Chestertons.

It was launched in 2015 as a low-cost alternative to the higher fees charged by Rightmove and Zoopla but controversially banned member agents from listing on both the “big two” rivals.

This rule will be dropped in the float, in which members will take shares in the new business and £50 million will be raised to fund a national advertising campaign.

The AIM launch should value the company at between £200 million and £250 million.

In terms of agents using the site, OnTheMarket is currently a distant third to its bigger rivals with around 5700 agent branches, compared with Rightmove’s 17,500 and Zoopla’s 14,300.

Chief executive Ian Springett said: “We are committed to creating a genuine agent-controlled alternative challenger business.”

Jefferies’ Anthony Codling said: “The success or failure of OTM will, in our view, be decided by their ability to significantly increase its customer base.”