WiseTech Global (ASX: WTC) shares will be under scrutiny this morning after its CEO and founder sold $45 million of shares.
What is WiseTech?
WiseTech was founded in 1994 by Richard White to provide software to the logistics sector. Since then it has grown to become a global provider of logistics software, claiming to service 19 of the top 20 logistics companies globally. WiseTech makes money by charging its customers on a ‘per use’ basis rather than as a subscription model. Meaning, WiseTech directly benefits as its customers grow their businesses.
This morning the tech company announced that RealWise Holdings Pty Ltd, a company controlled by WiseTech Global Founder and CEO Richard White, has sold 2,445,653 shares at $18.40 per share.
This translates to $45 million of shares sold and approximately 0.76% of the total issued shares of WiseTech Global.
However, before WiseTech shareholders worry too much, Richard White will still have voting control over 151 million WiseTech Global shares, being around 46.9% of the total shares. Using the $18.40 sale price, that equates to $2.78 billion. He still owns a lot of shares.
WiseTech said Mr White has confirmed his commitment to WiseTech Global and his intent to remain a significant shareholder for the very long-term.
He has sold some shares, but he still owns a large amount. If most of my wealth was in one company I’d think about diversifying too. I think it’s interesting he chose now to sell, rather than waiting for FY21. I wouldn’t call WiseTech a buy at this price though, I’d rather buy something like Bubs (ASX: BUB).
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Disclosure: At the time of writing, Jaz doesn’t own shares in any of the businesses mentioned.