#PICInquiry: AYO shares initially valued as high as R47 | IOL Business Report

PRETORIA – A senior Public Investment Corporation official has told retired Judge Rex Mpati that the enterprise value-to-earnings before interest, tax, depreciation and amortisation valuation method put AYO Technology Solutions’ actual value as high as R47 a share at the time of the company’s initial public offering.

Varghese said the P/E gave a base case value of R43 a share, which was derived from earnings a share of R2.68 a share multiplied by 16 x P/E. “The DCF valuation indicated a fair value of R45.29 a share. Another valuation method used in his model was EV/Ebitda, which indicated a fair value of R47 a share.”

“In a sense, AYO was like a special purpose acquisition company that would raise funds from the market to pursue specific target acquisitions using those funds to grow the business. The pre-listing statement gave broad outlines of around 10 businesses that Ayo targeted,” said Varghese.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Moneyweb to report Ayo to JSE for Companies Act contraventionCompanies are required to be transparent and accountable, but that doesn't seem to be the case with the controversial Ayo Technology Solutions.
Source: TheCitizen_News - 🏆 6. / 75 Read more »

PIC liquidated stocks to finance R4.3bn Ayo investmentGaanwe Adams, the portfolio manager of listed investments, told the PIC commission she and two of her direct line managers, received an email from former CEO Dan Matjila “which said we should create liquidity to settle the subscription of Ayo shares”.
Source: mailandguardian - 🏆 2. / 92 Read more »