The ASX utility share APA Group (ASX: APA) has suffered a significant sell-off of more than 5%. This decline seems to have been sparked by one of Australia's largest superannuation funds.
As the chart below shows, today's decline marks the latest decline for the business despite its ongoing distribution growth for security holders.
Declines can be caused by a number of issues, like weak business updates or a shift in the broader economic world.
A share sale can raise concerns because it raises questions about why the investor is selling. It may mean all those shares need to find a new home, usually at a discounted price.
According to reporting by the Australian Financial Review, UniSuper – one of the biggest industry super fund investors, sent out JPMorgan Chase (NYSE: JPM) on Thursday to sell shares after the market closed.
The newspaper reported that JPMorgan was looking for buyers of a 5.3% stake in the ASX utility share on behalf of UniSuper.
According to the AFR, the APA shares were being offered to fund managers at between $7.23 and $7.43 per share, a discount of between 2.7% and 5.4% at the time of the last traded price of $7.64. The APA share price is now trading at $7.21, just under the bottom of that range.
It was reported that JPMorgan was calling for bids in 5 cent increments from the floor.
Prior to this sale, UniSuper was the largest APA shareholder, holding just under 10% of the ASX utility share.
Perhaps coincidentally, last month, several scientists, such as Peter Singer, Lesley Hughes, and David Karoly, called for UniSuper to use its clout as a shareholder to encourage the business to stop plans of developing gas pipelines in the Beetaloo Basin.
For every seller, there's a buyer, so while UniSuper has reduced its ownership, other investors now own those shares.
This sale comes after APA recently received the positive news that the Australian Energy Regulator (AER) released a draft decision to maintain the existing light regulation regime on the South West Queensland Pipeline (SWQP).
That decision recommended that the SWQP not be subject to full price regulation. The AER decision is preliminary, and further consultation and submissions from APA and other stakeholders will be required. The AER will then come to a final decision, which could confirm the draft decision.
Since the start of 2024, the APA share price is down over 15%.
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