Prosus makes strong Amsterdam debut


Prosus makes strong Amsterdam debut

Published Date: 2019-09-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

Prosus makes strong Amsterdam debut

The stock traded 30% above its indicative reference price in early trade, valuing the company at over 120 billion euros.

Prosus became Europe's largest listed consumer internet company when the Naspers subsidiary started trading on Euronext Amsterdam yesterday. It has also become one of Europe's biggest listed companies and the second-biggest tech group after German software giant SAP.

The company's shares jumped over 30% to €77.40 in early trade yesterday, well above the indicative reference price of €58.70 per share given by Euronext. The rise valued it at around €123 billion. The indicative price was calculated using the Naspers closing price on Tuesday, adjusted for currency conversion, and divided by the shares outstanding of Prosus.

Its shares debuted at R1,238.50 on the JSE, where it has a secondary listing. Naspers fell 30%, reflecting the unbundling of Prosus. It will continued to hold at least 73% of the newly-listed company.

Prosus includes all the Naspers internet assets outside of SA, including its companies and investments in the online classifieds, payments and fintech, food delivery, e-tail, travel, education, and social and internet platforms sectors, among others. Assets include, OLX, Avito, letgo, PayU, Tencent, iFood, Swiggy, DeliveryHero, Udemy, eMAG, and MakeMyTrip. It also houses its 31% stake in Chinese internet giant Tencent.

The Euronext markets are some of the largest capital markets in Europe, hosting close to 1,300 listed issuers with a combined market capitalisation of €3.5 trillion at the end of March. Naspers said they connected all of the European markets in which it would be operating, providing it with access to investor bases in the Eurozone, the UK and other international investors.

CEO Bob van Dijk said the listing was an exciting step forwards for the group, giving global technology investors direct access to its unique and attractive portfolio of international consumer internet businesses.

Naspers shareholders who didn't elect to be issued Naspers N ordinary shares under the capitalisation issue will receive Prosus N ordinary shares on the settlement date, currently expected to be Monday, and can start trading them on an "as-if-and-when-issued" basis.

On the JSE, Naspers fell to R2,465 from R3,522.82, while Prosus closed at R1,202.65.

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