After the huge drop of their revenue, Dis-Chem’s CEO Ivan Saltzman, executive Stan Goetsch and director Niall Hegarty sold 32 million shares.
The pharmacy group has raised R1.1 billion to contribute towards their branch expansion, although the shareholders are not happy with the news.
In recent news, the pharmacy revealed that they had dropped 14% of their company share price of their capital-raising programme. Rui Morais, the chief financial director of Dis-Chem, said the capital raised was a ‘wealth diversification method’ for a few of the original shareholders.
Senior Dis-Chem executives Ivan Saltzman, Stan Goetsch and Niall Hegarty sold altogether 32 million ordinary shares at R35 per share, which helped them raise R1.1 billion. After this transaction, Saltzman, Goetsch and Hegarty own 52.7%, 6% and 3.2% in Dis-Cem.
Equity analyst at JM Busha Group Simbarashe Chimanzi said that the accelerated bookbuild was necessary as it opened free float and added liquidity t the share, but the market was not impressed because of the level at which the bookbuild occurred.
“I assume the market believes the share should be trading around the R34/R35 level, closer to the level the bookbuild was done,” he said.