UK online estate agent PurpleBricks eyes £50m for US expansion
Online estate agent PurpleBricks is looking to raise £50m from a new share placement to fund its US expansion, which is expected to launch in H2 2017. PurpleBricks estimates the US market is worth around $70bn in annual estate agent commission. The placing will be managed through a accelerated bookbuilding process, led by Zeus Capital, Investec and Peel Hunt and the shares have been priced at 220p each.
Purplebricks reveals share placing to raise up to £50m to build on US plans

Purplebricks Group this evening revealed it would be issuing a new slew of shares in a bid to raise up to £50m to support its dreams of expanding across the Atlantic.

The placing shares have been priced at 220p, which represents a 0.6 per cent discount on Tuesday's closing price.

The online estate agent, which listed on Aim towards the end of 2015, hopes to start rolling out its business into the US in the second half of this year.

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"We are proud to announce our plans to launch Purplebricks in the US, a market we estimate to be worth some $70bn (£56.3bn) in annual estate agent commission," said Michael Bruce, group chief exec of Purplebricks Group. "Our customer proposition of high quality service and value, delivered through the combination of technology and people, is driving irreversible change in the UK and Australian markets.

"We are confident that with our understanding of the US market and our experience from having already launched in two markets Purplebricks can build a significant business in what could be one of the most fascinating and rewarding real estate markets in the world."

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The placing is being carried out through an accelerated bookbuilding process, which was launched at the same time as the company made the announcement.

Zeus Capital, Peel Hunt and Investec have been appointed joint bookrunners, and they will determine the number of placing shares.