Purplebricks - the UK Unicorn with the crazy value soars, we suggest a cheaper alternative
The online estate agency with the wacky valuation has announced plans to expand in the US. While the valuation looks totally bonkers to us, we commend the Group’s ambition and ‘can-do’ attitude; other AIM stocks take note. For those wanting exposure to online estate agencies there is a cheaper alternative on AIM which we mention in our Blog here
Purplebricks Group (AIM:PURP) has raised £50m at 220p, representing a modest 0.6% discount to the share price before, suggesting that shareholders were keen to support this. With the net raised £48.7m there was also a nice fee for the advisers! - Crazy valuation! With a combined 270k shares now in issue and the share price 268p, the approx. £724m market capitalisation still looks totally crazy to us, but we said that on listing and the shares have more than doubled since! Broker forecasts are practically worthless as nobody really knows where this business could go to. However, let’s be really…