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The founder and CEO of Cettire (ASX: CTT) has sold $100 million worth of stock after the luxury fashion e-commerce retailer recorded its first profit as an ASX-listed company yesterday.
Following a $19 million loss in the previous financial year, Cettire reported $16 million profit for FY23 amidst major improvements in numerous metrics such as higher active customer numbers, a lower customer acquisition spend as a percentage of sale, and a higher share of revenue coming from repeat customers.
Mintz's share sale represents around 8.7 per cent of Melbourne-headquartered Cettire's issued capital and leaves him with a 37.2 per cent stake in the group, making him still the largest shareholder.
Mintz sold 33.3 million shares at $3 each by way of an underwritten block trade, representing a 7 per cent premium to the previous day's closing price but still shy of the $3.14 trading level at yesterday's market close.
At the time of writing, CTT shares are up again today by 4.14 per cent at $3.27.
"Cettire is in a very strong position with continued momentum, with all key markets performing strongly, as demonstrated in the company’s FY23 results released yesterday," says Mintz.
"In response to strong investor demand, undertaking this share sale provides enhanced liquidity and free float, improving the likelihood of achieving major index inclusion in the short to medium term."
Mintz owned the entirety of Cettire prior to its December 2020 initial public offering (IPO) at $0.50 per share, and held 65.9 per cent of the company after listing.
The company was initially created through a business incubator set up by Mintz in 2014 called Ark Technologies, where the business concept for Cettire was quickly prioritised as the entrepreneur identified a market opportunity to build a global online proposition in the personal luxury goods market.
According to Cettire's prospectus, this was followed by "several years developing the supply chain and constructing a technology platform to deliver a compelling customer proposition that largely automates the process of connecting customers with a wide range of inventory at attractive pricing and fulfilling their purchases with speed and accuracy".
In October 2020, Cettire's annualised revenue stood at $85 million, compared to $416.2 million within three years in FY23.
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