More than 3 million shares have been placed in a special facility set up by OnTheMarket (OTM) after the initial public offering (IPO) lock-up period ended this month.
At the time of the IPO, agent shareholders were barred from selling their shares for five years, and that lockup period ends on February 9, 2023.
OTM said in December that it had created an opportunity for a one-time sale, without which it claims “the market price achievable by the selling agent’s shareholders could be adversely affected.”
The portal announced this morning that shareholders intend to sell a total of 3,130,675 common shares of the company at 0.2p each to 76p common shares.
Management shareholder Morgan Ross will sell the placed shares through Intertrust Employee Benefit Trustee Limited, the trustee of the Company’s Employee Benefit Trust.
The shares placed represent approximately 4.1% of OnTheMarket’s issued share capital.
The shares are deposited with a dematerialized custody service called OTM Corporate Sponsored Nominee (OTM CSN).
The shares continue to be owned by the agent, but agents may elect to offer their shares for sale in a one-time offering expected to occur in February 2023.
The idea is that placement aims to identify buy demand to match overall sell demand and achieve the best outcome for selling shareholders.
If the shares are not sold, they can remain in the CSN and be owned by the agent, who can ask Link to sell them later on their behalf, or they can hold them or transfer them out of the CSN if they wish.
Comments are closed.