The UK?s largest residential lettings brand Martin & Co is the latest property-related company to announce its intention to list in London. The franchiser, which has some 30,000 properties on its books, intends to raise £4 million of new money ahead of debut dealings on Aim a week before Christmas (18 Dec).
Martin & Co's founders will partially sell down stakes through the initial public offering (IPO), which could value the business at up to £35 million. This price tag would leave Martin & Co trading on some 15 times earnings, if it makes the £1.9 million worth of taxable profit some commentators anticipate this year, a multiple which would not be too expensive.
The company's impending IPO comes hot on the heels of London-focused estate and letting agency Foxtons? (FOXT) market debut a few months ago (20 Sep), where the company raised £55 million to expand its network.
Bournemouth-based Martin & Co is also planning to extend its geographic reach through the acquisition of letting agencies or property portfolios to move the brand into new parts of the country. Such deals could also include estate agencies as several of its franchises also sell houses.
Martin & Co is looking to benefit from the anticipated rise in demand for rental properties, especially after the government announced it was to stop supplying banks with cheap money to help people buy houses. The value of rent paid on privately-rented homes is estimated to reach £70 billion in 2016, up from the £48 billion collected in 2011.
