Shares in embattled estate agent McGrath fell more than 8 per cent on Monday to a new intraday low of 43¢ after Fairfax Media reported founder John McGrath had accumulated a $16 million gambling debt with bookmakers William Hill.
Mr McGrath has strenuously denied the story, calling it “ridiculous” but shares still fell sharply after opening at 47¢ a far cry from its $2.10 float in December 2015.
They recovered later in the day, and were trading at 45¢ but ended the day at 44¢, a new low for the stock. It closed at just over 6 per cent lower than its previous close.
Mr McGrath, who pocketed $37 million from the float of McGrath, remains its biggest shareholder with a 26 per cent stake.
The company has floundered as a listed entity, wi…
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