An ASX-listed online retail platform that's seen its stock price rocket 726% over the last 13 months has seen its founder overnight offload $100 million of shares.
Cettire Ltd (ASX: CTT) chief executive and founder Dean Mintz, as first reported in the Financial Review, on Thursday night sold 33.3 million shares for $3 each to professional investors.
That represents roughly 8.7% ownership of the luxury goods retailer.
Is it the real deal?
Cettire listed on the ASX in December 2020, and has polarised investors ever since.
The platform sells luxury goods like shoes, coats and handbags to the public. Makers of such items don't have as large an online presence as cheaper brands, so Cettire is certainly filling a niche.
However, it has had battles in the past from reluctant vendors. Cettire also itself doesn't carry any stock, and earns its revenue from acting as a middle man.
The share price was as high as $4.32 in November 2021 before plunging in the growth sell-off during 2022.
However, from a bottom of 38 cents in mid-July last year, it is now flying high to trade at $3.14.
Sell high
It looks like Mintz was making an opportunistic liquidation, with Cettire shares soaring more than 11% on Thursday after a buoyant annual report.
Sales had doubled for the 2023 financial year and the delivered margin was up 156%.
The outlook for the coming year isn't bad either.
"FY 2024 has started strongly. Management advised that the positive trading momentum continues into FY 2024 as healthy demand remains," reported The Motley Fool's James Mickleboro.
"During the month of July, Cettire delivered positive adjusted EBITDA, with sales revenue increasing by approximately 120% over the prior corresponding period."
