Police raids at WiseTech expose market fears over Richard White's future
The latest incident at the ASX tech giant triggered a steep fall in its share price but one analyst said "the market probably sold first and will ask questions later".
The savage selloff in shares of WiseTech Global following the news of a police raid on the company has underscored ongoing market jitters about the company's deep reliance on its founder and executive chair Richard White.
WiseTech led losses on the ASX 200 on Tuesday following news that its offices were searched by the corporate regulator and the federal police, but whether this will have deeper implications for the business likely rests on the fate of its founder, analysts say.
Shares in WiseTech closed 15.9% lower on Tuesday - wiping $4.5 billion in value - potentially reflecting “the fear that Richard has to leave the company” if the Australian Securities and Investment Commission (ASIC) investigation doesn’t go his way, Jefferies analyst Roger Samuel told Capital Brief.
Even without White’s departure, the investigation could cause disruptions given the founder’s influence over company’s strategy as executive chair as well as its product development as chief innovation officer. White also continues to hold 34.67% of the company’s stock through Realwise holdings.
