Ocado finance director Andrew Bracey appears to think that the online grocery retailer's shares are a bargain and he has bought some in the offer and ahead of official trading next week.
The initial valuation range of 200p to 275p a share for loss-making Ocado was criticised as being too rich for investors. The share price was set at 180p, which valued Ocado, which delivers groceries from the supermarket Waitrose, at £937m. Ocado raised £200m after expenses and existing shareholders also sold shares. The cost of the offer was £15m.
Bracey acquired £100,000 worth of shares in the offer. He bought another 2,000 shares yesterday when unofficial dealings began and paid 169.25p a share. Since then they have fallen back to 159p each.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
That takes Bracey's stake to 807,555 shares.
Full dealings in the shares commence on 26 July.
Top Director Buys
Ocado Group(OCDO) Director name: Mr Andrew BraceyAmount sold: 2,000 @ 169.25p Value: £3,385
Top Director Sells
Alternative Networks (AN.) Director name: Mr Benjamin MarnhamAmount sold: 47,000 @ 156.00p Value: £73,320
Alternative Networks (AN.) Director name: Mr Benjamin MarnhamAmount sold: 38,000 @ 156.00p Value: £59,280
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the USMedium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.
