McGrath Limited shares have fallen on debut, despite pricing at the upper end of the range in the company's $129.6 million initial public offering.
At the end of trade (AEDT), McGrath shares were down 13 per cent at $1.835 compared to the IPO price of $2.10. The benchmark index was flat.
Previously known as McGrath Real Estate, the company started trading at 12pm (AEDT) today at the price of $1.94 before deteriorating through trade.
The shares were priced last month at the upper end of the initial public offering bookbuild range of $1.80 to $2.25 a share, giving it a total market value of $282m
The company, founded by John McGrath and trading under the code 'MEA', was spruiked ahead of its debut as having no debt and enjoying a 3.2 per cent share of the national market by sales volume, with a 7.2 per cent share in NSW.
The firm is said to be the first float of a real estate chain for some time and more akin to a retailing -- than than property -- firm as its sales volumes are not necessarily affected by a decline in house prices.
The company boasts 22 company-owned offices and 53 franchise offices, and had a turnover of $11.6 billion last financial year.