Rightmove shares rocket on debut

Rightmove shares have proved popular with investors

Shares in Rightmove, the UK's largest property website, have soared on its London stock market debut.

Strong demand for the shares saw them priced at the top end of expectations at 335p, valuing the firm at £425m.

But they had jumped 57.5p, over 17%, to 392.25p by the close, suggesting the firm may have been undervalued.

It means an instant profit for the firm's 135 staff who were given £500 worth of free shares, and the right to buy £3,000 in additional stock.

Rightmove lists more than 700,000 properties offered by estate agents around the UK and says it gets 10 million visits per month.

The company reported revenues of £18.2m last year - almost double 2004's figure of £9.2m.

By the end of last year, it had contracts with customers representing almost two-thirds of the total estimated number of estate agency offices in England and Wales, and a further 957 rental agents.

It is owned by estate agents Countrywide and Connells, HBOS and insurer Royal & Sun Alliance, who have placed 18% of the company's shares on the market.