Mobile operator Rain is now valued at over R23 billion, which is significantly higher than the combined value of Telkom and Cell C, two of its main competitors.
ARCI is an investment holding company with a diversified portfolio of investments picked to deliver long-term capital growth to investors. The latest ARC results show that Rain has reached a valuation of R23.08 billion, a figure difficult to grasp for a company about which little is known about its financial position.
It has a total ownership equity book value of R25.2 billion and generated R43.14 billion in revenue during its last financial year. This largely explains why Telkom shares are losing value and why it trades at such a discount on its equity book value. This means Rain would generate only half the EBITDA Telkom made in the first six months of the 2024 financial year, when it reported a R5.03 billion EBITDA figure.