As reported by SmartCompany today Onthehouse.com.au a mid sized Australian real estate portal is seeking to go to market to raise funds through an IPO.
Recently appointed chairman Jim McKerlie confirmed the float to SmartCompany this morning indicating they’re expecting to lodge a prospectus in the near further, with some reports indicating this could be as early as April 21.
Onthehouse was launched back in 2006 and initially only carried properties across Queensland. They quickly expanded interstate and now list properties from all across Australia. Their point of difference with their business model is the emphasis they place on past sales data and providing website users with useful comparative sales data.
The company is planning to issue 50 million shares at $1 a share in an effort to raise $50 million, leading to a market capitalisation on listing of $80 million.
“The capital is being used to accelerate the development of the company,” McKerlie says.
Given Onthehouse is a free to list portal this is a significant capital injection. If the IPO is a success then I hope they allocate a reasonable amount to R&D in an effort to bring the best technology to market. This injection should also provide Onthehouse with the marketing budget needed to take on the major real estate portal players in the Australian market.