Steadfast has begun planning for September 1 and the possibility of millions of its shares being put up for sale.

Some 172 million shares – about 35% of the company – were issued under the broker group’s listing last August and put into escrow, meaning the owners could not sell until the end of this month.

Steadfast has held meetings with members around the country in recent weeks, focusing on what might happen if there is a large sell-down, with attendees telling insuranceNEWS.com.au nervous executives tried to gauge the extent of likely selling.

MD Robert Kelly explained that if too many members sold their shares immediately, it could further depress the share price.

Steadfast’s shares were trading at $1.38 this morning, having fallen sharply since May. Sources suggest investors may fear the possibility of an overhang and have sold out in case the shares fall further.

The shares were issued at $1.15 and have traded between $1.25 and $1.85 since listing.

One member told insuranceNEWS.com.au Macquarie Capital and JP Morgan, lead managers to the float, may co-ordinate a sell-down, as much as this is possible if brokers decide to use their own stockbrokers or trade directly online.

“Steadfast is trying to manage it so sellers don’t flood the market and ruin it for everyone,” the broker said.

But the fears may be unfounded, with the attendee saying most brokers he spoke to have no particular reason to sell “and there is a lot of confidence in the company’s growth plans”.

Another broker told insuranceNEWS.com.au he has no intention of selling any shares.

“If I had more money I’d be buying more,” he said. “It is too early to sell. It will take 2-5 years for the shares to reflect the value in the company as the management brings it together.”