South Africa’s leading mobile network operator, Rain, has unveiled its interim results for the six months ending in December 2023, showcasing a staggering valuation of over R23 billion (equivalent to slightly over $1 billion).
This valuation, as reported by African Rainbow Capital Investments (ARCI), reflects the company’s remarkable growth trajectory. ARCI, a prominent investment holding organization committed to fostering black-controlled investment groups, has a significant stake in Rain, making it a key player in the telecom sector.
ARCI’s financial report reveals a notable increase in its intrinsic net asset value by 4.6% to R16.03 billion ($850,000), with an impressive rise of 12.9% in its intrinsic net asset value per share to R11.15 ($0.59).
While ARCI maintains holdings in various ventures like GoSolr, Sanlam Trust, Retail Capital, and LifeCheq, its primary investment focus lies in Rain, constituting a substantial 21% stake in the company, which accounts for 27% of its total investment portfolio.
Bolstered by these positive indicators, ARCI, under the leadership of South African billionaire businessman Patrice Motsepe, has injected an additional R81 million ($4.2 million) into Rain, increasing its interest in the telecom service to R4.8 billion ($254 million) during the review period.
Originally known as Rain 5G, the company made waves by introducing Africa’s first data-only fourth-generation network and subsequently launching the continent’s inaugural commercial fifth-generation network connection, a feat achieved through collaboration with Huawei.
Rain’s strategic shift to a conventional telecom operator in May 2023, coupled with the introduction of rainOne—an innovative offering blending mobile and fixed-wireless plans—has positioned the company as a formidable competitor in the market.
This transformation has paid dividends, as Rain’s valuation now surpasses that of struggling telecom giants Cell C and Telkom, marking a significant milestone in its journey, albeit amid industry investor controversy.
Source: Benjamindada