Mangrove Capital Partners continues to reduce its stake in Israeli DIY website builder Wix.com Ltd. (Nasdaq: WIX). According to a report filed with the US Securities and Exchange Commission (SEC) at the end of 2019, Mangrove cuts its holding in Wix to 1.8% from 6.9% at the end of 2018.
In other words, Mangrove took advantage of the high price of Wix's share, selling 2.2 million shares. At an average price of over $126 per share last year, Mangrove would have sold the shares for over $280 million.
To this must be added the 1.4 million Wix shares that Mangrove sold in 2018 at an average price of $95 per share, which would have brought in about $130 million. Thus in the past two years Mangrove has sold Wix shares for $410 million. The value of Mangrove's remaining stake in Wix is about $131 million.
When Wix held its Nasdaq IPO at the end of 2013, Mangrove held a 22.5% stake in Wix. Mangrove's initial investment in Wix was reportedly just $3 million.
Mangrove founder and CEO Mark Tluzcz serves as Wix chairman. He once told "Globes" that in 2011, Wix had turned down an offer to be acquired for $400 million. Wix's IPO in 2013 was conducted at a company value of $600 million. The company is currently worth $7.142 billion.
Published by Globes, Israel business news - en.globes.co.il - on January 28, 2020
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