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It’s been an interesting few years for Plus500, they floated on the London Stock Exchange in 2013 but endured a very difficult 2015 when its UK services were suspended by the Financial Conduct Authority, over concerns about their money laundering controls.
They managed to survive that, however, and thrive. They outperformed market expectations in the final quarter and had a sharp increase in their share price following on from their trading with the digital currency of Bitcoin. They are the primary shirt sponsor of the Spanish football team Atletico Madrid, and everything is looking positive for the company.
Now comes news, however, that the founders of the company notified the London Stock Exchange and sold a large chunk of their shares. These shares constitute around 7,27 million ordinary shares, and at a price of £11.00 per share.
It’s curious news given the reason for the filing, and that was due to “raising funds for personal reasons” which immediately makes you wonder what is behind such an act. Personal reasons usually directly affect one person, but for the five members to list that as the reason seems odd.
The specific reason may come out in the future, and it will be interesting to see what the future holds for them, CFD trading and the financial spread betting brokers industry as a whole. The founders will still hold a significant amount of Plus500’s share capital, but they wanted to raise funds for some reason. The sale has netted the founders a combined £80m, with Alon Gonen receiving £37.4 million of that after selling his 3.4 million shares.
We might find out that reason in the future, and see what investments the founders of the trading firm have in mind. Maybe they know something we all don’t, but they are keeping their cards close to their chest for a reason. For now, Plus500 continues to trade as normal after its positive share news recently.
The online trading industry has come under increased scrutiny recently, and it could be the case that they are getting out revenue during a high period for the company. Plus 500 though will march on, and will hope for more good news stories like they’ve had recently, and not the lows of 2015.
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