Survé compares Sagarmatha to Uber, says it would have been valued at $10bn | Business | M&G

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The chairperson of Independent Media, Iqbal Survé, compared Sagarmatha to Uber, saying if it had listed on the JSE and then on the New York Stock Exchange he had “no doubt” it would have reached a market capitalisation of $10-billion.

He compared the company to Uber, saying if it had listed on the JSE and then on the New York Stock Exchange he had “no doubt” it would have reached a market capitalisation of $10-billion .Survé, the head of investment holding group Sekunjalo, was giving evidence before the judicial commission of inquiry into the Public Investment Corporation.

The inquiry, which started its work in January, is investigating allegations of wrongdoing at the asset manager, including in its internal governance and how it made controversial investment decisions. The commission had previously heard testimony about how three companies linked to Survé — Ayo Technology Solutions, Independent Media and Sagarmatha — sought billions in funding from the state-owned asset manager.in April 2018. It had hoped to secure R3-billion in funding from the PIC, out of a total investment of R4.5-billion.“For the first time a unicorn would emerge from the African continent.

He also said some analysts did not understand how to value multi-sided platforms, like Sagarmatha, and compared it to the likes of Uber, Airbnb and Amazon.Lebohang Molebatsi, general manager for listed equities at the PIC, previously told the commission that engagements with Sagarmatha revealed that its valuation was significantly lower than the company’s requested initial public offering, but Sagarmatha was not willing to lower their expectations.

Molebatsi said the PIC’s deal team was further concerned that cash raised from the IPO would be used to buy Independent Media shares from the PIC. “This would effect mean that the exit of PIC would be funded by the PIC,” he said. —

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