The 33-year-old founder of In The Style, an online fast fashion website, is in line for a bumper payday as it explores a £100m stock market listing.
Adam Frisby, who set up the retailer in 2013, currently owns 40pc of the firm. He is understood to be seeking to sell a small proportion of his shares in the float, likely becoming a millionaire in the process.
Today he owns 40% of something worth £100 million. He’s a millionaire.
After the float he will own less than 40% of something worth £100 million and have some cash equal to the 40% minus x% of £100 million.
Yes, clearly, the float might increase the value of the company – liquidity – and all that. But it’s still clearly and obviously true that the swap – cash for shares – doesn’t make him a millionaire. It might crystallise it, recognise it, whatever, but the swap of one asset for another doesn’t make it.