Zalando’s majority shareholder Kinnevik sells shares; stock dives

Swedish investor Kinnevik has sold a portion of its shareholding in online retailer Zalando. The e-tailer’s largest shareholder has completed a placement of 13.13 million shares, it announced on Tuesday in Stockholm. The shares were issued at a price of about 42.50 euros per share.

Shares in the company fell by 9.5% to 41.13 euros on Tuesday. Despite the drop, the fashion company has seen its share price increase by 82% in the year to date. 

Kinnevik raised 558 million euros in the transaction. The placing represented 5.2% of its shareholding in Zalando. Kinnevik has committed to a lock-up period of six months, which means it will not sell any shares in the business for the next six months. The Swedish firm now holds a 26% stake in Zalando.