Börse & Märkte

Foxtons' Stunning Debut On The Stock Market

Foxtons shares doing nicely – stock is up 22% on its debut day on the UK stock market, rising to 280p from the top-range IPO price of 230p. At the end of August 2013, we provided our clients with a grey-market listing to trade the shares before the IPO debut; during the lead up to this date, we experienced high levels of demand for Foxtons, as our clients expressed their general bullishness over the UK housing market recovery.

 

Around the time Foxtons announced its shares offer, the Royal Institute of Chartered Surveyors said UK house prices grew by the most since 2006 in July 2013 as government backed schemes boosted sentiment around the housing market. Foxtons debut today reflects this; the stock jumping to 280p in the first half hour of trade demonstrates just how investors feel about business exposed to the US housing market recovery currently in boom.

 

Low interest rate environment assured by the BOE, continued government initiatives to induce first time buyers and the general optimism over the global economic recovery, not just the UK recovery, lifts the outlook for Foxtons and other stocks geared to a UK housing market recovery, particularly London. House-builders in the UK are experiencing the same bullishness -  Taylor Wimpey today up 1.5%, Barratt Developments up 0.9% and Berkeley Group up 1.3%.

 

Foxtons has 42 offices, focuses on property sales of between £200,000 and £1.4million, a price range that made up 78% of London sales in 2012. The company said that its first-half revenue of £62.6million pounds was 10.5% higher than the same period last year while adjusted earnings before interest, tax, depreciation and amortisation rose 14.3%.