Staff at Australian company Canva become instant millionaires

Workers at a private Aussie tech company have struck it rich after one of the biggest secondary shares deals in history went through.

Staff at Aussie graphic design company Canva are reportedly newly-minted millionaires after the firm’s blockbuster $2.27 billion ($US1.5 billion) secondary shares sale.

The firm is not expected to go public until 2025, however Canva’s chief operating officer Cliff Obrecht told Barron’s last year that an initial public offering (IPO) was inevitable because of the company’s size.

In the meantime, current and former employees were given the opportunity to sell shares to new investors in what’s been dubbed one of the biggest secondary offerings the tech world has ever seen.

Cameron Adams, Cliff Obrecht and Melanie Perkins.

The Australian Financial Review (AFR) confirmed on Friday that buyers had snapped up about $2.27 billion worth of shares during the first phase of the sale last month.

“Yes, people should have their money,” Mr Obrecht told the masthead.

That will make Canva employees, especially those who joined the company early, very wealthy, with some reportedly becoming instant millionaires.

Canva co-founder Melanie Perkins. Picture: Nic Walker/TWAM

Canva co-founder Cliff Obrecht. Nic Walker/TWAM

The transaction could, however, result in a hefty tax bill for staff.

If the deal triggers a capital gains tax (CGT) event, that would effectively add a large amount to the annual assessable income of workers. However, the system does provide a 50 per cent CGT discount for assets that have been held for at least 12 months.

Canva has called in accounting firm EY to help Canva staff navigate the complicated tax consequences of the sale, the AFR reported.

There could be more secondary share sales to come, with demand extremely high, according to Mr Obrecht.

Canva Pty Ltd, a private company headquartered in Surry Hills, Sydney, has about 3500 staff and generated $US2 billion ($3 billion) in revenue last year. Its parent company, Canva, Inc., is incorporated in Delaware, United States.

Its founders, husband and wife duo CEO Melanie Perkins and Mr Obrecht, have an estimated combined net worth of $10.13 billion.

Co-founder Cameron Adams has an estimated $3.73 billion to his name and Canva has been valued at $US26 billion ($39.35 billion).

The company’s main offering is a “free mobile and web-based design platform”.

Originally published as Staff at Australian company Canva become instant millionaires