Wireless network provider Rain is worth almost R26-billion, according to the latest valuation by one of its key shareholders, Patrice Motsepe’s African Rainbow Capital (ARC) Investments.
ARC Investments disclosed the figure on Tuesday in its unaudited interim financial results for the six months to end-December 2024. The increase in valuation is in part due to ARC’s investment fund acquiring shares from existing shareholders of Rain. It also reflects funds invested in new ventures by the wireless data operator.
ARC Investments now holds a 21.76% stake in Rain, up from 21% in June 2024. That stake has a value attached to it of R5.64-billion, meaning the implied valuation of 100% of Rain is now R25.91-billion, according to TechCentral calculations. That puts its valuation well ahead of much larger rival Telkom, which had a market cap at Monday’s market close in Johannesburg of R18-billion.
Rain, the largest component of the ARC investment fund, now makes up 27.6% of the fund value.
“The value of the company’s interest in Rain has increased by R399-million (acquisitions and net revaluations) to R5.64-billion in the period under review. The increase in fair value was as a result of the business progressing past the significant net cash outflow period, together with the successful launch of rainOne and the utilisation of the spectrum acquired in the last auction,” ARC Investments said.
‘Solid foundation’
ARC Investments had valued Rain at R25-billion at its last set of financial results, the full-year to June, published last September.
“Rain has established a solid foundation and continues to enjoy high subscriber growth driven by the strong performance of its rainOne and Rain mobile offerings. Its network received a significant upgrade to Huawei’s Apollo 5.5G, enhancing performance and capacity,” it said.
Read: Rain standalone mobile product launched at R165/month
ARC Investments announced separately on Tuesday that it plans to delist from the JSE and A2X stock markets in South Africa and to redomicile the company from Mauritius to South Africa. – © 2025 NewsCentral Media
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