Prosus listing: big risk for big reward?
The Prosus listing prospectus may make for a chilling read when it comes to risk analysis – but it doesn’t seem to have deterred investors
There was little sign that anyone contemplating investing in Prosus at its recent Amsterdam debut was thinking in terms of risk. The price of Naspers’s internet tech spin-off, dominated by China-based Tencent, ended its first day at levels well ahead of expectations.
London-based Olivetree Financial believes, if handled well, the Prosus discount to NAV could narrow to an acceptable 15%-20%. Disclosure is improving and the Amsterdam listing might attract international tech investors who shied away from an SA trade.