Real Estate

Foxtons valued at $1 billion in London listing

Dan Kitwood | Getty Images

Britain's Foxtons priced its London listing at the top of its range, valuing the estate agent at 649 million pounds ($1 billion) and defying concerns the property market is overheating.

Foxtons said on Friday it had sold a 60 percent stake for 230 pence per share, the top of its original 190 pence to 230 pence per share range.

The sale, which a source last week said was oversubscribed, raised 335 million pounds for selling shareholders, which included majority owner BC Partners and company employees.

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Foxtons, known for the distinctive Mini Cooper cars driven by its sales staff, also raised 55 million pounds from the sale of new stock to reduce debt.

London-focused Foxtons is the latest housing-related company to undertake an initial public stock offering (IPO) on the back of Britain's recovering housing market, following UK-wide estate agent Countrywide and housebuilder Crest Nicholson earlier this year.

Britain's housing market has shown signs of a revival this year, spurred by a healing economy and help from the government and the Bank of England to ease access to finance.

(Read more: House prices: The real sign a bubble is approaching)

But the scale of the recovery has raised concerns about a new property bubble. Data last week showed British house prices recorded their fastest rise in almost seven years.

Shares in Foxtons will begin trading at 0700 GMT.

Credit Suisse and Numis Securities acted as joint bookrunners on the offering, with Canaccord Genuity co-lead manager. Rothschild was financial adviser.

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