The deputy chairman of Dunelm has sold a stake in the business worth £192 million.
Will Adderley, whose parents founded the homeware retailer, offloaded a 7.4% stake in the company so that he could broaden his investment portfolio.
The sale of 15 million shares, at a discounted price of 1,280p per share, sent the company’s stock tumbling lower on Tuesday morning.
Shares in the business had stood at 1,408p at the close of trading on Monday, before the share sale was announced.
Following the placing, the Adderley family has retained an aggregate holding of 43% of the business.
In a statement, Dunelm said: “The shares were sold to institutional investors in a placing managed by Barclays and Goldman Sachs International acting as joint global co-ordinators and joint bookrunners.
“Will Adderley remains fully committed to Dunelm in his role as deputy chairman as well as a very substantial shareholder in the company and his working relationship with the company is unchanged.”
The Leicestershire-based company has reported strong sales growth despite the impact of the pandemic, as customers have sought to brighten up their homes.
Last week, it reported that its pre-profits soared by more than a third to £112.4 million in the six months to Boxing Day.
It revealed that total revenues had increased by 23% to £719.4 million after an 111% surge in online sales.
Shares in the company were 8.1% lower at 1,295p in early trading on Tuesday.