John McGrath decides to float company

McGrath Estate Agents has formally announced its intention to list on the stock exchange and has revealed when it expects to start trading.

The company, formally known as McGrath Holding Company Limited, has today lodged a prospectus with ASIC in relation to listing on the ASX.

McGrath Estate Agents will have a market capitalisation of $281.8 million, based on 134.2 million shares at an offer price of $2.10 per share.

Following completion of the offer, the company will be renamed McGrath Limited and existing shareholders will hold 46.3 per cent of the stock.

Chief executive John McGrath will be the largest shareholder with 27 per cent.

Retail applications will open on 23 November and close on 2 December, with settlement scheduled for 4 December.

ASX trading is expected to start on a deferred settlement basis on 7 December and then on a normal settlement basis on 9 December.

Mr McGrath, who founded the company in 1988, said the float would be an important step in his original goal of building a world-class business.

Chairman David Mackay said Mr McGrath had methodically built the company from a one-man operation into one of Australia’s leading agencies.

“I believe McGrath is a unique business differentiated by its hybrid business model and performance-embedded culture with an ongoing commitment to the highest level of sales training for its agents,” he said.

[Related: McGrath grows sales 76% in two years]

 

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