GMO Click's Shares down 10% as Parent Firm GMO Internet Sells Shares

Shares of GMO Click are lower by about 10% today to ¥1070, after it was announced that its parent firm, GMO Internet sold off a portion of its holdings in the Japanese Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term broker. Spun off earlier this year, at the time of GMO Click going public on the JASDAQ market, GMO Internet continued to hold a nearly 100% stake in the company. Being sold today in an off-market sale to investors was 4.5% of GMO Click. Following the purchase, GMO Internet will continue to hold a dominating position in GMO Click, owning 93.9% of voting rights in the broker.

For GMO Internet, the sale registered a profit for the firm. Expected to be reported in its Q2 2015 financial report, the sale nets GMO Internet ¥4.7 billion ($37.93 million) on a consolidated basis. Despite disclosure of the profits, shares of GMO Internet are down slightly lower today.

According to GMO Internet, the purpose behind the sale was to improve Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term in available shares of GMO Click as it trades as a separate company. Despite GMO Click’s market capitalization of nearly $1.1 billion, due to the small float of available shares to the public, only a small fraction is available for private investors and institutions to purchase. With the added liquidity, it provides greater access to investors to increase their positions in the broker.

Overall, the activity in GMO Click’s stock is similar to other IPOs of companies where secondary sales compose the bulk of shares reaching the public. In February 2014, a similar sale was conducted by insiders of Plus500 who sold 17.4% of their holdings to the public. At the time, the increased supply led to shares dropping 11% on the day of the sale, before rebounding.