BC brings in the banks for Foxtons float

Alice Murray
07 June 2013

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BC Partners has hired Credit Suisse, Numis Securities and Canaccord Genuity to handle the flotation of London estate agency Foxtons.

It is understood that the listing will take place after the summer and could raise up to £400m.

Plans to go ahead with the IPO follow the recent listing of Foxtons' competitor Countrywide, backed by Oaktree Capital, which managed to achieve 350p per share, generating a market capitalisation of £750m.

London-based BC Partners purchased Foxtons in May 2007, shelling out around £400m for the estate agent, which the firm later referred to as the "F-word" – the pricey buyout, bought at the peak of the market, caused much pain for BC. Under the private equity firm's ownership Foxtons fell into the hands of lenders Bank of America Merrill Lynch and Mizuho when it failed to keep up with debt repayments.

However, BC returned to the company as the housing market picked up and repurchased Foxtons last year. The 2012 deal saw BC buying a majority stake in the company for £75m.

Foxtons has benefited from the buoyant London property market and reported pre-tax profits of £35.4m in 2010 and 2011.

The estate agent was founded in Notting Hill Gate in 1981 as a two-man operation. The company now operates 42 branches throughout London, Surrey and Middlesex with plans to expand further.