Naspers' Prosus commands a R1.9 trillion market value
The company finally debuts in Amsterdam.
Naspers’s new international listing of its internet businesses, called Prosus, surged by a third on its stock market debut in Amsterdam on Wednesday, valuing it at about R1.9-trillion.
The listing of Prosus is a significant event for the JSE and Naspers, as it will see the unbundling of the group’s international internet businesses, including its 31 percent stake in Tencent. Naspers will retain a stake of around 73 percent in Prosus.
Prosus comprises South African group Naspers’ global empire of consumer internet assets, including the stake in Tencent, the world’s biggest video game company and home to China’s hugely popular WeChat social media platform.
Shares in Prosus, a spin-off from Naspers that includes the e-commerce group’s 31 percent stake in Chinese tech giant Tencent, surged more than 25 percent on their stock market debut in Amsterdam on Wednesday, creating one of Europe’s largest internet companies.
“We’ve become so big that further growth of our company on the JSE (Johannesburg Stock Exchange) would be difficult,” Naspers CEO Bob van Dijk (pictured) told reporters after the listing, which values Prosus at more than $100 billion.
“The idea with today’s listing is emphatically that we find a new generation of investors here, on the Euronext, for our further growth,” he added, referring to the Amsterdam exchange.
The spin-off marks the end of an era for Naspers as it looks to move beyond the legacy of former CEO Koos Bekker’s prescient investment of just $34 million in Tencent when it was a startup in 2001, one of the most lucrative bets in corporate history.
The stake in Tencent is now worth $130 billion and has buttressed Naspers’ rapid growth towards becoming Africa’s most valuable listed company.