Foxtons to launch IPO on London Stock Exchange

Foxtons to launch IPO on London Stock ExchangeLondon estate agency, Foxtons has said that it is planning to launch its initial public offering (IPO) on the London Stock Exchange aiming to raise up to £500 million.

Foxtons has indicated that it could share a windfall of up to £100 million from the offering. The announcement of the IPO is a major turnaround for the BC Partners, the estate agency's private equity owner that recorded a sharp fall in Foxtons during the recent financial crisis. The IPO also indicates that the general London property market is recording a strong recovery.

The recovering economy as well as the Government's Help to Buy scheme and easier mortgage lending conditions have helped bring a recovery in the UK's housing market, booting the overlal property market. UK house prices have risen by about 4.6 per cent over the three months to July, according to the figures released by Halifax.

Foxtons is aiming to raise funds in the market at time when the sentiments are improving in the market. If the IPO goes through, chief executive is Michael Brown, who owns around 20 per cent of the agency could earn thousands.

BC Partners bought Foxtons in May 2007 for £360 million but the agency was affected by the credit crisis. The IPO shows that the agency is recording stable recovery in the country.