MCGRATH SCOOPS UP SHARES AT A BIG DISCOUNT

Written on the 22 March 2016 by Nick Nichols

MCGRATH SCOOPS UP SHARES AT A BIG DISCOUNT

JOHN McGrath has taken a punt on his real estate company's fortunes by snaring more than $430,000 worth of shares at a deep discount to last year's IPO.

The Sydney-based real estate boss has acquired 317,000 shares in McGrath Limited (ASX:MEA) for an average of just over $1.35 a share.

That's a 35 per cent discount to the price McGrath offloaded the shares in the $282 million IPO launched late last year.

McGrath personally reaped $37.4 million from the IPO which involved the issue of 72 million shares at $2.10 each.

However, a softening Sydney real estate market led to a selldown of the stock immediately after their December 7 debut. The shares have traded as low as $1.205.

McGrath added fuel to the fire when his company released its interim profit result in February.

McGrath warned of an uncertain short-term outlook for the property market in the wake of falling house prices in Sydney. He warned that this was headwinds that the company hadn't bargained for prior to listing its shares.

Since listing on the ASX, McGrath has expanded primarily into Melbourne where it plans to build its brand profile. McGrath entered the Queensland market about five years ago and it also has extended its reach there since the IPO.

Following the latest share acquisition, McGrath has lifted his interest in McGrath Limited to 36.57 million shares.

They are worth about $52.8 million based on the current price of $1.44.


Author: Nick Nichols

Latest News

CROMWELL TRADES STEADILY IN FIRST HALF

CROMWELL Property Group has maintained a steady operating profit at $0.045 per security in the first half of FY17,...

WHY NEXTDC'S STOCK IS SOARING

AFTER posting its interim result, NEXTDC (ASX: NXT) gained more than 12 per cent on the stock market before noon.
...

PWR PROFIT CRASHES AS DOLLAR RISES AND COSTS MOUNT

A RISING Aussie dollar has offset PWR Holdings Limited's (ASX:PWH) overseas growth in the last half, forcing a...

SUPER RETAIL GROUP RESULTS SHINE ACROSS THE BOARD

A WELL-planned and executed half has paid off for Super Retail Group (ASX:SUL) as it posts a net profit result up ...

Related News

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter