Rain shareholder African Rainbow Capital (ARC) Investments has valued the wi-fi broadband operator at R25-billion, practically double Telkom’s R14-billion market capitalisation on the time of writing.
In line with ARC Investments’ monetary statements for the 12 months ended 30 June 2024, which had been printed on Monday, the ARC fund made a further funding of R160-million in Rain in August, with shares acquired from one other shareholder.
Because of this, ARC Investments’ stake in Rain has elevated barely to 21%.
“The introduction of rainOne, together with the 101 5G router, has considerably boosted Rain’s progress,” ARC Investments mentioned in an announcement.
“This, coupled with the enterprise having moved past its most vital interval of web money outflows, has been a key issue within the improve in truthful worth of Rain’s funding.”
In July 2024, Rain launched its standalone 4G cellular service and continues to increase its protection in varied cities and cities nationwide, ARC mentioned.
In line with ARC, Rain generated R2.5-billion in Ebitda – earnings earlier than curiosity, tax, depreciation and amortisation, a measure of working revenue – for the interval, leading to a good worth acquire of R598-million. The worth of ARC’s stake in Rain grew by 16% from R4.5-billion in 2023 to R5.2-billion in 2024, and now represents 26% of the worth of the ARC fund. – © 2024 NewsCentral Media
