Plus500 Founders Reduce Stake to 16% with £80 Million Share Sale

March 3, 2018

London-stock market listed CFDs provider Plus500 on Thursday said it ‎has been notified by its founders that they intend to sell up to 7.27 million shares in the ‎company, equivalent to a 6 percent chunk of the spread better. They agreed to a 6-month lock-in period in respect of the remaining balance of their ordinary ‎shares in the company.‎

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Shares in Plus500 closed down 2.6 percent at 1,166.00 pence per share in London Thursday.

‎Five of Plus500’s Israeli founders – ‎ Alon Gonen, Gal Haber, Elad Ben-Izhak, Omer Elazari ‎and Shlomi Weizmann – plan to offload their holdings at a price of 1,100 pence each, raising aggregate gross proceeds of £80 million for the sellers.

Plus500 itself will not be compensated in any way from this offering, according ‎to the LSE filing ‎

Assuming all 7.27 million shares are sold, the founders will continue to hold a 16% stake in ‎Plus500 when the placing completes.‎

Liberum Capital Limited, the company’s broker, is acting as global co-ordinator for the placing.‎ The Israeli-based broker said the founders have agreed with Liberum, as part of the deal, not to sell any further shares for a period of 180 days after the completion of the current offering.‎

‎”The founders intention to sell reflects their desire to diversify their investments whilst ‎raising funds for personal reasons,” Plus500 said.‎

Plus500 was formed in 2008 and is currently one of the biggest CFD, FX and spread betting providers in the ‎United Kingdom, trailing behind IG. According to the firm’s annual financial statement for 2017, ‎Plus500 posted a 33 percent increase in revenue to $437.2 million, with a net profit of $199.7 million, up 70 percent year-over-year. ‎

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