London-based real estate agent Foxtons made a strong debut in the London bourse. The company was valued at more than GBP 788 million or USD 1.27 billion in early trading. Foxtons announced that it was able to sell a 60% stake of its stake for 230 pence a share. When the market opened, the firm's shares were trading at 21.5% more than the offer price at 279.50 pence a share.
The recovering housing market in Britain had prompted real estate company Countrywide and house building firm Crest Nicholson to go public earlier this year. Foxtons is the third housing-focused company to do so. Countrywide and Crest Nicholson saw their share prices go up by over 50% after their initial public offerings.
Investors, however, expressed apprehension that Foxtons was already too late to take advantage of a revival in the housing market. According to Reuters, the rapid rise in the recovery had also spurred concerns from analysts about an impending property bubble.
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