Naspers Limited: IPO Prospects Are Regionally Dependent

2025-01-22 02:13:09 ET

Summary

• Naspers trades at a discount due to lack of catalysts, geopolitical risks, and concerns over its major holding, Tencent, amid US-China tensions.
• Latest results show positive revenue in payments and fintech, but edtech struggles to grow strongly; Prosus portfolio's valuation is impacted by capital market conditions.
• US IPO market collapse and higher cost of capital limits positive headlines for the VC portfolio, though other destination markets that are similarly important are doing fine, like India.
• The issue lately has been this addition of Tencent to the CMC list. We are worried about Trump's hard line on Chinese companies in the US with the headlines around TikTok.
• We are also concerned that somewhat indefinite tensions between the US and China explain most of the SotP discount since Tencent features so heavily, and this won't go away.

...

Read the full article on Seeking Alpha

For further details see: