McGrath makes its stock market debut

McGrath makes its stock market debut

ASX
by 1 comments

McGrath Estate Agents has seen its share price go backwards on its first day as a publicly listed company.

Shares in the real estate group ended yesterday at $1.835 after they started trading at $2.10 – a decline of 12.6 per cent.

This has resulted in McGrath’s market capitalisation decreasing from $281.8 million to $246.2 million.

Chief executive John McGrath, who founded the company in 1988, said last month that the float would be an important step in his original goal of building a world-class business.

Some of the funds generated from the float will be used to help the group expand, including a move into Victoria “in the near term”.

“I believe our model provides us with advantages over other real estate groups as it allows us to partner with strong local franchisees and roll out our brand into new regions, as well as to selectively open new company-owned offices,” Mr McGrath said last month.

“In addition to our ongoing organic growth, the offer gives us the opportunity to consider selectively acquiring businesses that are compatible with McGrath.”

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

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent grew his database by 50% in five years

In this episode of Secrets of the Top 100 Agents, Robert Pignataro joins host Tim Neary to explain how he increased his personal database by...

View all podcasts

Does the benefit of being part of a branded group outweigh the cost?

Yes
No
Depends on the group
Do you have an industry update?