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

STAFF CHURN BLAMED FOR MCGRATH EARNINGS DOWNGRADE

MCGRATH will fail to meet earnings forecasts after some of its star real estate agents defected to growing Perth firm...

MCBAIN RESIGNS AS BELLAMY'S DIRECTOR WHILE THIRD CLASS ACTION MOVES CLOSER TO SECURING FUNDING

LAURA McBain (pictured) has resigned as a director of Bellamy's Organic (ASX: BAL) today, effective immediatel...

REDBUBBLE TO MISS IPO FORECASTS

REDBUBBLE, the online marketplace for independent artists, will miss a series of forecasts set out in its IPO in its ...

BLUESCOPE CONTINUES STRONG RUN WITH GUIDANCE UPGRADE

BLUESCOPE Steel (ASX: BSL) is trading up 7.51 per cent at $11.16 per share after upgrading its half-year guidance thi...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter