Shares in online retailer (ASX:KGN) dropped as much as 10 per cent on Tuesday after founders Ruslan Kogan and David Shafer sold another $40 million of their stock.

The company today confirmed the sale of 6.25 million shares by entities associated with Mr Kogan and Mr Shafer.

The sales leaves Mr Kogan with about 31 per cent of the company, worth about $200 million. He remains the biggest shareholder followed by Mr Shafer who now holds about 12 per cent.

The shares went to 20 investors, both local and international. Demand was high with more than $100 million chasing the $40 million on sale.

The stock closed down 9 per cent on Tuesday at $6.40 — just short of the $6.41 price at which the founders made their latest sale.

The shares touched an intraday low of $6.33 earlier in the day — still well up on their $1.80 issue price back in 2016.

They have traded between $3.14 and $10 over the past year.

It’s the second time in three months the founders have sold down their stock. shares (ASX:KGN) dropped 10 per cent today after the founders sold $40m of stock shares (ASX:KGN) dropped 10 per cent today after the founders sold $40m of stock

In June, the pair sold $42 million of shares in what the company described as a reluctant move to “due to personal financial” commitments.

The founding directors now both say they have no intention to sell any shares before the release of the 2019 financial year results.

Greg Ridder, Chairman, noted the very substantial interest from new and existing share owners.

“It is great to see our work at continue to attract significant interest from both domestic and international shareholders who value our business strategy and execution,” he says.

“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.”

‘Fully committed’

The company says Kogan and Shafer remain fully committed to the business and continue to have the majority of their personal wealth invested in the company.

Last month the pure play online sales machine posted full-year profit of $3.7 million — a 362 per cent rise on last year, outperforming its prospectus forecast.

This month announced plans to offer home loans to its 1.3 million customers.

Kogan Money is the latest to be added to the company’s portfolio offering.

In June, signed a supply and logistics agreements which allow it to enter the Australian Whitegoods and Built-In Kitchen Appliance Market with its own range of exclusive brand price-competitive products.

The company has Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance, Kogan Health and Kogan Travel.


This article first appeared on Business Insider Australia, Australia’s most popular business news website. Follow Business Insider on Facebook or Twitter.