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JOHN McGrath has taken a punt on his real estate company's fortunes by snaring more than $430,000 worth of shares at a deep discount to last year's IPO.
The Sydney-based real estate boss has acquired 317,000 shares in McGrath Limited (ASX:MEA) for an average of just over $1.35 a share.
That's a 35 per cent discount to the price McGrath offloaded the shares in the $282 million IPO launched late last year.
McGrath personally reaped $37.4 million from the IPO which involved the issue of 72 million shares at $2.10 each.
However, a softening Sydney real estate market led to a selldown of the stock immediately after their December 7 debut. The shares have traded as low as $1.205.
McGrath added fuel to the fire when his company released its interim profit result in February.
McGrath warned of an uncertain short-term outlook for the property market in the wake of falling house prices in Sydney. He warned that this was headwinds that the company hadn't bargained for prior to listing its shares.
Since listing on the ASX, McGrath has expanded primarily into Melbourne where it plans to build its brand profile. McGrath entered the Queensland market about five years ago and it also has extended its reach there since the IPO.
Following the latest share acquisition, McGrath has lifted his interest in McGrath Limited to 36.57 million shares.
They are worth about $52.8 million based on the current price of $1.44.
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