LJ Hooker has the Australian Stock Exchange in its sights as the franchised real estate group considers floating its business. 

According to the Australian Financial Review, the 87 year-old firm has started a pre-initial public offering call-out, with Citigroup and Morgans working on the deal. It is understood to be looking for $20m.

Fund managers will be drawing comparisons with the Realogy Franchise Group, the parent company of Century 21, ERA, Coldwell Banker and Sotheby’s International Realty. The US$5.5bn business trades on a forward profit multiple of about 26 times.

Property sales

The AFR revealed that LJ Hooker franchisees had sold property worth in excess of $19bn in the last year. The managed property portfolio has been increased to about 130,000, with a value of $75bn.

Monies raised through an ASX listing are expected to be used for acquisitions, and further investment in the franchise network. The group has more than 700 franchised outlets across Australia and Asia-Pacific.

It is not expected any ASX listing will take place until the early part of next year.

• Rival firm McGrath Estate Agency earlier this month undertook a buyout of its largest franchisee, a business of 10 Sydney offices, paving way for a possible float.