Rain shareholder African Rainbow Capital (ARC) Investments has valued the wireless broadband operator at R25-billion, nearly double Telkom’s R14-billion market capitalisation at the time of writing.
According to ARC Investments’ financial statements for the year ended 30 June 2024, which were published on Monday, the ARC fund made an additional investment of R160-million in Rain in August, with shares acquired from another shareholder.
As a result, ARC Investments’ stake in Rain has increased slightly to 21%.
“The introduction of rainOne, along with the 101 5G router, has significantly boosted Rain’s growth,” ARC Investments said in a statement.
“This, coupled with the business having moved beyond its most significant period of net cash outflows, has been a key factor in the increase in fair value of Rain’s investment.”
In July 2024, Rain launched its standalone 4G mobile service and continues to expand its coverage in various towns and cities nationwide, ARC said.
According to ARC, Rain generated R2.5-billion in Ebitda – earnings before interest, tax, depreciation and amortisation, a measure of operating profit – for the period, resulting in a fair value gain of R598-million. The value 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 value of the ARC fund. – © 2024 NewsCentral Media
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