It's proving to be a rough day for All Ordinaries Index (ASX: XAO) share Cettire Ltd (ASX: CTT) after its founder and CEO was confirmed to have offloaded a massive chunk of the company's stock.
Right now, the Cettire share price is down 11.9%, trading at $1.48. For comparison, the All Ords index is up 0.32% at the time of writing.
So, why has the company's largest shareholder sold down their stake? Keep reading to find out.
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All Ords stock Cettire falls as boss offloads 41 million shares
Cettire founder and CEO Dean Mintz has sold a near-$60 million stake in the online luxury goods retailer in a move that's decimating its share price today.
The approximate 41 million share stake was offloaded in an underwritten block trade. The parcel represents 10.8% of the company's issued shares.
Mintz pocketed $1.46 per share from the sale – marking a 13% discount on the company's previous close. That leaves the total sale valued at around $59.8 million.
Despite parting ways with such a huge chunk of the All Ords constituent's shares, the company's boss still boasts a healthy 45.9% hold.
Commenting on the sale, Mintz said:
Cettire is in a very strong position with excellent momentum as demonstrated in the company's trading update provided at the [annual general meeting] yesterday.
The share sale represents a relatively small portion of my shareholding in the company and enables me greater diversification, whilst increasing the free float and scope for Cettire shares to achieve inclusion in major indices over time.
Investors needn't worry about any more selling for a little while. Mintz will escrow the rest of his Cettire shares until the company posts its half-year earnings in February.
The luxury retailer debuted on the ASX in December 2020. It offered shares for 50 cents apiece under its initial public offering (IPO).
The retailer announced its unaudited October sales had increased 82% year-on-year to reach $34.8 million yesterday. Its unaudited revenue also lifted 71% to $45.9 million, while its average order value jumped 13% to $839.
