Zoopla shares rose more than 5% on debut today after the property website bowed to market pressure and priced its flotation lower than previously anticipated.
The company was valued at £919 million as it joined the London Stock Exchange at 220p a share, in the lower half of its original 200p-250p range.
However, the decision was welcomed by the City as the shares climbed up to 236p, unlike other recent listings, such as Saga, which have flopped on debut.
The valuation means that DMGT, owner of the Daily Mail and minority shareholder in the Evening Standard, could make up to £190 million from the listing although it will retain a 33.7% stake in the group.
Countrywide said it had sold a 2.2% stake worth £19.9 million but will continue to hold a 4.1% stake. “This looks a decent result for DMGT in our view, given a more soggy initial public offering market,” said Steve Liechti, analyst at Investec.
“This is not great for the bulls in our view but better than our low-end forecast,” he added.
