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.
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
-
How to boost your pension pot as 35% of UK over 50s face huge retirement savings gapOver 50s are facing a later life with little to no funds - but there are steps you can take now to boost your pot.
-
Zoopla: House sales fall for first time in two years as buyers wait for Autumn BudgetThe average price of a house in September was £270,000, down £1,000 from August as the housing market’s Christmas slowdown came early, Zoopla says
