4sight to bring the “Internet-of-Things” to the JSE


4sight to bring the “Internet-of-Things” to the JSE

Published Date: 2017-10-18 | Source: Stephen Gunnion | Author: Stephen Gunnion

4sight to bring the “Internet-of-Things” to the JSE

The data analytics company has priced its shares ahead of tomorrow's listing

The JSE's first technology listing in a number of years, 4sight Holdings, has priced its shares ahead of its listing on the JSE's AltX tomorrow. It says following its book building process, it settled on an issue price of R2 per share after receiving applications between R1.80 and R2.05.

4sight is a data specialist and comes to market with one operating subsidiary: Mauritius-based Digitata, bought in July. Digitata operates mainly in the telecommunications industry, specialising in the "Internet-of-Things", big data, machine learning, artificial intelligence, block-chain technology and data science. Following its listing, 4sight says it plans to buy a number of companies. These include BluESP, which uses intelligent algorithms and machine learning to optimise plants for large mining and manufacturing companies; systems integrator AGE Technologies Jhb; and Foresight, which owns stakes in a number of data analytics companies.

A recent note by FNB Securities says while 4sight's price:earnings multiple upon listing may seem a little stretched relative to its peer group, this is expected to unwind relatively quickly with its pipeline of acquisitions which are expected to be earnings accretive. It says 4sight could trade at a slight premium to net asset value given the make up of its portfolio of mostly unlisted companies and its niche sectoral exposure.

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