Post-float lock-up hits Darktrace shares
Darktrace’s plummet continues, with shares slumping as investors offload stock at the end of the company’s post-float lock-up.
The cybersecurity giant’s shares peaked at more than £10 just a few weeks ago, but have now dropped to around half that level.
The fall was initially caused by a scathing brokers’ note from Peel Hunt, but the end of the company’s post-IPO lock-up has prompted a fresh sell-off.
This morning Vitruvian Partners, its fifth biggest shareholder, dumped 11m shares at a discount price of 580p, sending the share price down as much as 11 per cent to the bottom of the FTSE 100.
Darktrace was backed by Mike Lynch, the former Autonomy chief who is awaiting a decision on whether he can be extradited to face criminal charges in the United States, which he denies.
Lynch and his wife Angela Bacares own nearly 16 per cent of Darktrace, according to Refinitiv data.
It shares, which listed at 250 pence in April, reached a high of 1,003 pence in September.
A sell-off was triggered earlier this month when broker Peel Hunt initiated coverage of the stock with a “sell” rating, saying there was a disconnect between the valuation and the revenue opportunity for the company.
The shares fell to the lowest level since August in early deals on Wednesday before regaining some ground to trade down 5 per cent at 600p at 10:47 GMT.
More to follow…