Listed real estate agency McGrath has gone into a trading halt.
The company, founded by John McGrath in Sydney, says it is reviewing the 2016 financial year prospectus forecasts in light of current market and trading conditions.
“The trading halt is requested in order to allow McGrath time to finalise its analysis of information and review by the board,” the company said in a statement to the ASX.
Announcing half year results in February, McGrath then said it was currently on track to meet 2016 prospectus forecasts.
However, there was a note of warning. “Market conditions have become more challenging in the short term including a slowdown in Chinese buyer activity, increased stock market volatility and the impact of APRA regulatory changes which increase risk in the sector,” said founder and CEO John McGrath.
The company, the first in real estate agency to list on the ASX, floated in December, raising $129.6 million.
The shares, which last traded at $1.30, have been a disappointment for investors. They dropped below the IPO price of $2.10 and haven’t reached those levels since.
The agency is estimated to be the third largest in Australia as measured by the value of properties sold. In 2015, it had total turnover of $11.6 billion from 11,000 sales made by 600 agents.
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