Kogan's founders have sold off approximately $40 million in company shares, sending the online retailer's share price into a nosedive.
The company announced to the ASX that Ruslan Kogan and David Shafer had sold off 6.25 million shares, representing about 6.7 percent of Kogan's shares.
The news was met with a nine percent drop in share price, falling from $7.05 at the start of trading on Tuesday morning to $6.42 half-an-hour later. The share price has bounced back slightly to $6.50 each at the time of writing.
Kogan chairman Greg Ridder said there was "very substantial interest" from new and current shareholders.
"It is great to see our work at Kogan.com continue to attract significant interest from both domestic and international shareholders who value our business strategy and execution," Ridder said.
"All shareholders will have the benefit of added depth and liquidity afforded by this transaction while maintaining our founders', Ruslan Kogan and David Shafer, interests in the company at proportions amongst the highest on the ASX.
The latest share dump follows a similar move in June this year when the two founders said they had "reluctantly" offloaded six million shares due to "personal financial commitments" that were valued at $42 million. That selloff also caused the share price to take a hit, falling by 50 cents at the time to $7.37, a fairly steep drop from its all-time highest share price of $9.85 in March.
The company said in a statement that Kogan and Shafer still had the majority of their personal wealth invested in Kogan, and that they had no intention to sell any more shares until the company's financial results for the first half of FY19 were released.
Kogan nearly quadrupled its profit in FY18 to $14.1 million thanks to the addition of new verticals and expanding customer base. Revenue was up 42 percent to $412.3 million for the year as well, while its active customer base hit 1.39 million.
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