Alpha FX (LON: AFX) management and board members are liquidating a significant portion of their holdings in the forex service provider that together represented around 9.6 percent of the company’s total share capital.
The shareholders willing to trim their positions on the company include its co-founder and CEO, Morgan Tillbrook who will sell 2,714,281 AFX shares; co-founder, Jonathan Currie selling 904,760 shares; CFO, Tim Kidd liquidating 120,000 shares; and two board members, Clive Kahn and Lisa Gordon, who are selling 65,000 and 42,112 shares, respectively.
A Perfect Time to Sell the Holdings?
Their decision to sell-off came at a time when the publicly-listed shares of the company are on a steady rise since the dip in April. AFX share prices peaked in late January after touching £13.5. However, it dipped to as low as £5.15 as the COVID-19 crisis resulted in global equities sell-off.
The London Stock Exchange (LSE) notification detailed that all the parties have together agreed to sell up to 3,846,153 ordinary shares for £9.10 per share, meaning the total amount involved is almost $35 million. Alpha FX shares are trading at £9.38, as of press time, after gaining 32 percent since the last closing.
“The timing for the close of the bookbuild process and the distribution of allocations will be at the absolute discretion of Liberum (the sole book-runner of the company),” the exchange filing noted.
The decision of the massive liquidation came as the lock-in agreement of the shares held by the co-founders expired on April 7, 2020. Both Tillbrook and Currie have agreed to hold the remaining company shares in their possession for another three years.
It is to be noted that even after the completion of the sell-off, all the participants will still together hold 23.8 percent of Alpha FX’s issued share capital.
Similar to most of the other trading market players, Alpha FX recorded solid growth in its H1 2020 revenue, FortuneZ earlier reported on its 16 percent year-on-year revenue jump. That also kicked the share prices of the company towards rising.
However, in a detailed financials published recently, the company reported a year-on-year decline in its half-yearly profits by 26 percent.