Cettire founder Dean Mintz has confirmed the sale of 41.1 million shares in his company at $1.46 each. He pocketed $60 million as a result.
Cettire founder Dean Mintz has confirmed he has sold a $60 million stake in the company last week. This amounts to around 41 million shares at $1.46 a share, or 10.8 percent of issued capital. The luxury brand online retailer boasts a catalogue of more than 2,500 luxury brands.
Upon the news of Mintz’s selldown, the share price plunged from $1.68 to $1.44 (at time of publishing) with investors skittish about the volume and frequency of the founder’s selldown. Cettire hit a record low of 33 cents in June, and was slowly climbing back up before this event. This time last year Cettire was in a significantly better place at $4.29 on 18 November 2021.
Though he remains the largest stakeholder, the sale cuts Mintz’s stake in the company from 56.7 percent to 45.9 percent.
“The share sale represents a relatively small portion of my shareholding in the company and enables me greater diversification, while increasing the free float and scope for Cettire shares to achieve inclusion in major indices over time,” said Mintz.
While Mintz has agreed to escrow the rest of his holding until at least February next year, his actions earlier this year inspires little confidence.
This isn’t the first time this year that Mintz has offloaded a large chunk of shares in the company. In March, the founder of the company sold 35 million shares for over $47.2 million. This was the first sale Mintz had made since 2019. “The sale represents a small portion of my shareholding and I will remain Cettire’s largest shareholder,” Mintz said, following the sale in March. “The sale enables greater trading liquidity and a broadening of the share register and I look forward to welcoming the new shareholders to the company.” Mintz put the rest of his stock into a voluntary escrow. He promised that he wouldn’t sell any more of the shares until after the release of Cettire’s results for the end of the year 2022. He had also reportedly told shareholders in late August that he had “no current intention to sell shares in the company”.
The enigmatic founder of the company is famously private, emerging quietly into the scene having debuted on AFR’s young rich list at number 12 in 2021. He launched Cettire in 2017 which boomed as a result of the pandemic induced online migration. As consumers have made their way back to traditional retail, Mintz has felt the burn. Falling $1 million a day, Mintz’s wealth has taken an over $300 million hit after shares in Cettire have fell more than 60 per cent. He featured at number 27 on the Young Rich List this year, his net worth was reported to be $252 million at the end of last month.
Last month, Cettire reported ‘rapid, profitable growth’ in Q1 FY23. “The demand environment remains healthy and our quarterly performance also serves to highlight the attractiveness and resilience (to economic challenges) of the global luxury consumer,” said Mintz. Cettire sales grew 82 per cent in October to $34.8 million compared to the same period last year. Mintz, said the business has started the second quarter “strongly” guided by a seasonal upswing in traffic and average order value and effective marketing. Looking to the future, Cettire is set to launch a Chinese-language website, with an app to follow shortly.
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