Bill Adderley, founder and life president of homewares retailer Dunelm has completed a placing of 15.6m shares, or 7.8% of the firm, at a price of 310p per ordinary share.
He retains approximately 34% of Dunelm's issued share capital and will not sell any more shares for at least 12 months.
Adderley's son Will, who has a 25% stake in the company, has informed the board that he has no intention of selling any of his 50m shares in the firm.
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
Broker Singer Capital Markets argues that the secondary placing of Adderley's shares will improve liquidity in the home furnishing company's shares.
'Prior to this announcement, the free float of Dunelm was c. 32.7%, and will subsequently increase to c. 40.5%,' Singer notes.
Last month, Dunelm said it was 'very pleased' with a big rise in sales at the start of its new financial year.
-
How taking a two-year career break could leave a £26k hole in your pensionCareer breaks are increasingly common but it is important to take steps to protect your pension, as gaps compound over time
-
Cash in on your attic: Thousands could be sitting dormant in your storageSelling your valuables at auction could be far more lucrative than you think. We take a look at how auctions work, and some tips to help you maximise your profits
