Glenveagh CEO gets €4.6m from sale of company shares

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Glenveagh founder and chief executive Stephen Garvey has sold €4.6m worth of shares in the company in his first disposal of stock since the housebuilder’s initial public offering (IPO) in 2017.

r Garvey sold 4m shares last Friday at close to a 2021 high of more than €1.15 per share, according to stock market filings – slightly above the IPO closing price of €1.13.

The transaction takes his stake in the company down to approximately 1.2pc from 1.6pc, leaving him with 9.4m ordinary shares worth more than €10.7m.

The sale marks the first time Mr Garvey has converted any part of his shareholding in Glenveagh into cash.

A spokesperson said the decision to sell was related to the management of Mr Garvey’s personal investment portfolio.

It is understood the disposal was not linked to the prospects of the business, which swung back into profit in the first half of the year, and no further selldowns are planned.

The shares were sold to open market buyers and not to the company, which is conducting a separate €75m share buyback programme.

Mr Garvey also owns founders’ shares which entitle him to a portion of total shareholder’s returns subject to share price performance. Those shares have not vested yet.

Shares in Glenveagh have been steadily climbing since the Covid-19 market shock of March 2020 when the price dipped as low as €0.47.

The positive performance of the stock since interim results on August 26 has brought that price close to its post-IPO high of €1.26 which was achieved in January 2018.

The price rise has been helped along by an ongoing housing shortage in the Irish market and the company’s buyback programme, which has been mopping up shares since May.

Glenveagh was formed through the combination of Bridgedale, Mr Garvey’s Maynooth-based housebuilding firm, with post-crash development sites assembled by US private equity giant Oaktree.

It is understood the €4.6m realised by Mr Garvey represents a portion of the original value of Bridgedale.

The October 2017 IPO of the company raised €550m and left a 16.5pc stake with Oaktree, which has been selling chunks into the market since a second market fundraising in 2018.

Oaktree now owns slightly less than 1.2pc of the business. The biggest shareholders include hedge fund Teleos Management, Singapore sovereign wealth fund GIC and Fidelity.

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