The stock price of the publicly traded CFDs brokerage Plus500 Ltd, (LON:PLUS) is down by over 16% this morning – Plus500 Stock price is trading below the 650 pence level, down from about 750 pence yesterday. The sharp change should not be unexpected if you have been following the news as the firm’s founders have announced they will be selling 13% of Plus500’s shares.
Plus500 has updated today that the founders have successfully sold an aggregate of 15,500,000 ordinary shares at a price of 650 pence per share raising aggregate gross proceeds of £100.75 million for them.
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The placing is expected to settle on a T+5 basis on 6 October 2016, subject to the satisfaction or waiver of certain customary conditions. The company also notes it is not a party to the placing and will not receive any proceeds from the placing. Liberum Capital Limited (“Liberum”) and Joh. Berenberg, Gossler & Co KG (“Berenberg”) acted as joint global co-ordinators and joint bookrunners in connection with the placing.
According to the official announcement filed with the LSE yesterday: “The Founders’ intention to sell reflects their desire to diversify their investments whilst raising funds for personal reasons.”
“We anticipated the change in Plus500’s share price today as it shadows the price at which yesterday’s transaction was executed (650p) rather than yesterday’s closing price (750p) – it’s an entirely normal adjustment the market makes when shares are bought and sold below the closing price. The founders selling 13% of the Company’s shares will have a positive impact on the liquidity of the shares whilst diversifying the share register and introducing a number of new institutional shareholders,” said Elad Even-Chen, CFO of Plus500.