Moonpig experienced its worst day of trading in three years as private equity backers cashed in significant stakes at a double-digit discount.
The decision sent shares plunging resulting in what became the greetings card retailer’s worst day of trading as a listed company.
The group of investors, led by private equity firm Exponent, sold 25m shares in the FTSE 250 retailer at 160p apiece, more than 10% below Wednesday’s closing price of 178p.
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The sale cut Exponent’s stake in the business by about a third to 8.2% and will raise £40m in proceeds.
Abrdn, GoldPoint, LGT Capital Partners and Strategic Value Partners joined the secondary placing, with Citigroup and Jefferies acting as joint global bookrunners.
This sent Moonpig’s share price falling 10.9% to 158.2p on Thursday (25 April) morning.
Key investors have been steadily reducing their stakes in Moonpig since its bumper £1.2bn listing on the stock market in 2021, where shares were offered at 350p apiece.
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