Co-founders of, Ruslan Kogan and CFO David Shafer sold 6.9% stake in the company as its share price skyrocketed following its FY20 result earlier this week. In a note sent to the ASX in the morning of 19th August 2020, the Australia-based fintech company stated that the co-founders will be selling 7.3 million shares in the company. 

Shafer and Kogan remain the largest shareholders in with 5.8% (6.1 million shares) and 15% (15.3 million shares) stakes in the company respectively.

More on Kogan co-founders selling stake

Shares of hit $22.99 by Tuesday’s closing. By Wednesday morning’s opening trade, it dropped 4.95% to $21.95. The shares were then sold somewhere between $21.60 and $22.25 at a discount between 3.2% and 6% on Tuesday’s closing price which netted the duo about $160 million. 

Greg Ridder, Chairman said that Shafer and Kogan continue to love building the business and are thrilled about the opportunities ahead. After the significant increase in shareholder value, the co-founders have taken the opportunity to balance a portion of their investments in the company while continuing to remain’s largest shareholders, he added.

Ridder also took the opportunity to welcome the new shareholders to the company and also recognize the on-going interest of the existing shareholders to increase their level of ownership.

SEE ALSO: UK-based fintech Revolut launches its full services in Australia

Why did share prices soar?

On 17th August 2020 (Monday), shared its response to its impressive FY20 results.The company’s year that ended on 30th June 2020, reported a 39.3% increase in gross sales ($768.9 million). The report also indicates a 35.7% increase in its active customer base (2,183,000) as its key catalyst.

The report also recorded the company’s 4.7% increase in its gross margin 25.4%. which was supported by growth in seller-fee-based and commission-based revenue across a few new verticals and Kogan Marketplace. As a result, Kogan’s earnings grew at a quicker rate. Despite investing a large pool of money in marketing, reported a 57.6% increase in adjusted EBITDA to $49.7 million. In June 2020, the company also raised 100 million through an institutional placement.

Ultimately, fintech company Kogan declared 13.5 cents per share as a fully franked dividend. As compared to the company’s prior corresponding period, it was up by 64.6% and brought Kogan’s full year dividend to 21 cents per share. This meant that investors who bought shares at $3.45 in March are to receive 6% on cost.

SEE ALSO: Fintech company Credi launches vendor finance solution for Australian SMEs

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