On October 1, 2018, HelloWorld Travel Limited (ASX: HLO) made an announcement regarding the share sale by the executive directors and Qantas. Cinzia Burnes and Andrew Burnes have decided to unload 2.5 million each at the price of $5.50 per share. However, for the same price, Qantas has decided to unload 2 million shares. After HelloWorld came out with its FY 2018 results, the company received many enquiries related to the liquidity opportunities from the domestic and international investors. According to Andrew Burnes, the share sale done by him would help in increasing the shareholder base of the company. The increase in the liquidity might also make the HelloWorld feature in ASX300 list moving forward.
As far as Burnes interests are concerned, the share sale by them reflects around 11.4% of the total shareholding. Coming to the share sale done by Qantas, their sale reflects around 9.4% of its total shareholding. However, post-sale, Qantas total shareholding has now been trimmed to 15.4%. The stake sale from both the shareholders has been made to the fund managers. This sale would help HelloWorld to gain liquidity in the market. This step of selling the shares represents a significant move. As compared to Flight Centre, the company’s competitor, it shares have been trading at a significant discount.
During the times of acquisition, HelloWorld would be backed by the support of the equity markets. In 2015, The Australian Outback Travel Company or AOT, a private company, got merged with HelloWorld. Andrew and Cinzia Burnes were the key persons heading AOT. However, it seems like the share sale was unable to cheer up the investors. The market reacted negatively to the news leading to a fall 1.658% in the shares of HelloWorld Travel Limited at the time of writing on October 1, 2018. The company has a market capitalization of $750.78 million.
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