Real estate services company McGrath float hits ASX bourse at $1.94 and rising

Some two decades in the making, the real estate services company McGrath Ltd commenced trading today after floating at 12noon on the stock market.

Its initial trading price was $1.94, slightly below the public offering price at $2.10.

It was trading at $2 several minutes after the 12 noon float, then $2.02 some 15 minutes in. It got to $2.03, then closing the day at $1.83. 

McGrath Holding Co Ltd (MEA ASX) filed a prospectus to sell a 53.7 per cent stake, or 72.1 million shares, for $2.10 each, giving it an envisaged market capitalisation of $281.8 million.

There are some 1770 shareholders.

The digital pioneer Daniel Petre sits on the board as a non-executive director of the company lead by Sydney agent John McGrath.

McGrath appointed JP Morgan and Bell Potter as joint lead managers for the expected float.

Luminis Partners was advising McGrath.

Its annual residential sales turnover for FY15 was $12.3 billion from 11,760 sales with its newest offices opened in Bankstown, Frenchs Forest, Long Jetty, Revesby, Ryde, The Ponds (NSW), Annerley/Yeronga, Cairns, Noosa, Rockhampton and Wilston (QLD).

McGrath has expanded to 73 offices in the network.