CFDs broker Plus500 LTD that is FCA regulated had gone on for the acquisition of a renowned institutional shareholder along with BlackRock Inc. and thus, ended-up obtaining a major interest of 7.02%.
If you take the recent market price of PLUS into consideration, it can be seen that PLUS values at £14.48 whereas the BlackRock stake that is in Plus500 is currently having a worth of £115.8 million.
As a matter of fact, a maximum percentage of the interest was obtained in Plus500 shares whereas the stake’s one-third is still in the possession of BlackRock in Plus500 CFDs.
Being the world’s most trusted and biggest asset manager, BlackRock successfully manages over $6.2 trillion assets with its expertise.
On a side note, Axxion S.A. from Luxembourg, a private label fund manager shocked everyone when he took 5% ownership of the Plus500.
Shares Droped Due to Poorer Second Quarter Results
With a drop of over 25% in the share price of Plus500, it’s seen that there has been a massive growth in the institutional ownership and the company has witnessed the best high till date with more than £20 per share during the early weeks of August.
But soon the drop came with the second quarter results of Plus500 that exhibited strong results but when compared to record-setting Q1, the second quarter results were not as remarkable as Q1 was.
Also, with the introduction of new regulations of ESMA, the leverage that the traders can make use of were put under control. Furthermore, as the two competitors namely IG Group as well as CMC markets have given negative outlook warnings against Plus500’s share and so, it had seen a gradual fall in its price.
The two largest shareholders of Plus500 namely Playtech PLC and the founders of the company sold $400 million of Plus500 shares to other placements following the institutional purchases.
Further, Playtech has completely left the company’s stake which it bought in 2015 in an attempt to acquire Plus500. On the other hand, the founders of the company only own 7.7% of the total stake amount.