Southeast Asian internet giant Catcha Group has sold nearly 46 million shares of ASX-listed portal and marketplace site operator Frontier Digital Ventures. The off-market block trade sees Catcha Group’s shareholding in its fellow Malaysian based company go from 26.5% to 13.1%, with FDV founder Shaun Di Gregorio retaining his 10.9% shareholding having not sold shares.
Although the company has investments across several verticals, Catcha Group has a long history in the realm of online classifieds having grown companies such as iCarAsia and iProperty (which was sold to REA Group in 2016) as well as launching Malaysian end-to-end rentals platform Instahome back in October. Catcha Group has held shares in FDV since 2014 and the two companies enjoy a close relationship with both headquartered in Kuala Lumpur and Catcha co-founder Patrick Grove and FDV founder Shaun Di Gregorio having worked alongside one another at iProperty Group.
It would appear that this week’s block trade by Catcha Group was intended not only to take advantage of FDV’s historic share price highs of A$1.78 but also to substantially increase FDV’s trade liquidity and free float. FDV’s stock was added to the S&P/ASX AII Technology Index back in December, and with the stock’s increased liquidity resulting from Catcha Group’s partial divestment this week, its possible March inclusion on the prestigious ASX 300 index might be one step closer.
Although the market reacted to the news of the block trade by shunting FDV’s share price back down to A$1.48 this morning, a Q4 trading statement due to be delivered by the company next week may see the price shift again.