WiseTech (ASX:WTC) founder sells $45 million of shares


Companies and indices mentioned:


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.

What happened?

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.

Summary

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. 

Jaz Harrison

Jaz Harrison

Jaz is a keen investor who loves to thoroughly poke holes in an investment idea before it has a chance of making it into her portfolio. Jaz invests for the long-term and doesn't sweat the small stuff. She strongly believes that empowering people with knowledge is the best way for them to take charge of their finances, which is exactly the approach she takes with her own money and investments.