Multichoice Share Price rose by 15.5%
Shares in MultiChoice [JSE:MSG] rose by 15.5% in early trade on Wednesday after the entertainment company listed on the Johannesburg stock Exchange, Fin24.
MultiChoice, a spin-off from ecommerce giant Naspers, stood at R110.06 per share at 0957 GMT, just over 15% higher than its opening price of R95.50, giving it a market capitalisation of R48 billion ($3.47 billion).
Naspers hoped listing MultiChoice would help narrow a valuation discount between its market value and that of its one-third stake in Chinese internet group Tencent, and believed MultiChoice would fare better on its own.
MultiChoice’s market value was, however, still well below some analysts’ estimates of around $6 billion.
Claude van Cuyck, portfolio manager at Denker Capital, which holds Napsers shares and has kept its stake in the newly-independent MultiChoice, said the price was likely weighed down by its losses in its business outside South Africa.
Naspers CEO, Bob van Dijk.
“Today is a proud day for Naspers. Listing MultiChoice Group through an unbundling unlocks value for Naspers shareholders by creating the opportunity for them to own a direct stake in MultiChoice Group, a top-40 JSE-listed African entertainment group,” said Naspers CEO, Bob van Dijk.