Prominent real estate agent throws $400k at own company
John McGrath has ploughed an additional $400,000 into his own real estate agency, buying more shares in a show of support after a dismal ASX performance.
The prominent real estate agent bought 317,000 shares in McGrath this week, lifting his stake in the company to 27.26%, from a previous holding of 27.03%
The purchase represents a show of support for the company, which has slumped 33% since listing on the ASX on December 7 after issuing shares in the company at $2.10 a share.
The agency was advised by Simon Mordant’s Luminis, JPMorgan and Bell Potter.
A spokesman says that McGrath until this week has been legally restricted from acquiring additional shares due to the level of his holding and a pre-IPO restructure, but has taken advantage of the buying opportunity as soon as the restriction lapsed.
We are very happy with how our business is performing to date and delighted with the level of support by many of our investors
The purchase also follows the moves of substantial shareholder Perpetual, which has grown its stake to more than 13% since listing, and directors Cass O’Connor and chairman David Mackay, who have also added to their holdings in past weeks.
“We are very happy with how our business is performing to date and delighted with the level of support by many of our investors that share our long-term view for the growth opportunities of the company,” McGrath says.
“McGrath is in a strong financial position, and we continue to focus on delivering our growth strategy with all the fundamentals still in place prior to our listing the company in December … we have seen the average auction clearance rates above 75% for the past seven weeks in Sydney, despite the negative sentiment caused by those seeking to create headlines.”