Shares in Kogan.com slumped as much as 10 per cent after co-founders Ruslan Kogan and David Shafer offloaded $40 million worth of shares in the online retailer.
Kogan, whose shares had at one point risen more than fivefold since listing on the ASX in 2016, says the duo sold 6.25 million shares – which equates to about 6.7 per cent of the company’s securities on issue.
Both say they do not plan to sell any more shares ahead of Kogan’s next half-year results in February, but the move sparked a sell-off that at one point pushed the stock down 65 cents to $6.38.
Kogan’s shares closed 63 cents, or 8.96 per cent, lower at $6.40.
Shares in the online retailer had prevously plummeted in June after media speculation Mr Kogan and Mr Shafer had sought to sell stock worth $100 million.
But the pair did not receive a bid they found acceptable and no transaction occurred.
Kogan recently reported an annual profit of $14.1 million – almost four times what it made a year ago – with a 42.4 per cent jump in revenue to $412.3 million.
Mr Kogan has previously defended the board’s decision not to provide guidance for 2017/18 or 2018/19.
The company will instead provide a performance update at its AGM in November.