John McGrath on real estate jitters impact on his company's opening day float

John McGrath on real estate jitters impact on his company's opening day float
John McGrath on real estate jitters impact on his company's opening day float

Listed estate agency boss John McGrath says he was disappointed by the first day trading of his real estate services company when the shares finished 26 cents down on their $2.10 IPO price to $1.83.

"We're very disappointed because the business is no different from the one when we did our institutional road show."

He said it's a long game and "you don't judge it on the first day."

"Certainly there are a few people with jitters around the residential market which we think a little unwarranted," he told Ross Greenwood's 2GB Money News program.

"There's no doubt the sting's come out of the market but there's still huge turnover in markets like Sydney and Melbourne so we think it's just about getting your market share right and growing your business."

The float saw some 1770 shareholders take shares, with around five percent of its stock sold on the opening day.

The second day trade saw shares dip to $1.73 around mid-day after opening at $1.85.

Founded by Mr McGrath in 1988, the agency network has 565 agents operating across 75 real estate offices, which in 2015 generated around $11.6 billion in sales.

At the close of its first day trading McGrath was capitalised at around $228 million.

John McGrath pocketed about $37 million from the float, selling down his stake in the company from 58 per cent to 27 per cent.

Tags: 
Property market Residential Sales

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