Picture: ISTOCK
Picture: ISTOCK

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 flow statement showed its cash reduced by R42.5m to R254m at the end of 2017.