Companies / Telecoms & Technology Sagarmatha’s asking price more than 100 times its book value, results show Owned by Iqbal Survé, the company hopes to attract a minimum of R3bn in its initial public offering on Friday, despite its accumulated losses BL PREMIUM

Sagarmatha Technologies — the company which has a deadline of Wednesday to attract a minimum R3bn support to proceed with its initial public offering (IPO) on Friday — made a R40m loss on R281.6m revenue for the year to end-December. Sagarmatha issued results reviewed by auditors BDO Cape Town via Sens on Tuesday, showing the company had a net asset value of 33.92c a share at December 31 — less than a 100th of the R39.62 a share IPO price its proprietor Iqbal Survé is pitching the new listing at. Survé hopes to sell 15.6% of Sagarmatha at R39.62 a share to raise R7.5bn, which would give the company an overall market capitalisation of R48bn. Prior to the listing, Survé owned 90% of the company via his family trust and subsidiaries of Sekunjalo Investment. If the IPO manages to sell 15.6% of the shares at the asking price, Survé would own about 76% of the remaining shares valued at R36.5bn. The results released on Tuesday showed Sagarmatha has an accumulated loss of R250m. Its cash fl...