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Naspers capital raise

Naspers sold off sharply on Friday, the stock was down four and a half percent by the close. The first announcement regarding the capital raise was released on Thursday, you can find it here: Launch of an accelerated bookbuild of up to US$2.5bn, the second one was an announcement in no time at all, before the market opened on Friday.

You can find it in the same place, it was the conclusion of the capital raising: "Naspers is pleased to announce that it has successfully priced the Placing, raising gross proceeds of US$2.5bn. A total of 18,167,848 new Naspers N ordinary shares (the "Placing Shares") were successfully placed with qualifying institutional investors at a price of ZAR 1,975 per share. The Placing Shares being issued represent approximately 4.3% of Naspers's issued N ordinary share capital prior to the Capital Raising."

There you go. That was the reason for the share price falling. I think that it is a good and bad thing. Using equity that is expensive, relative to what the markets thinks, feels not that great, being able to get it away in a heartbeat (before the market even opens) is a wonderful thing and represents a certain positive demand. We continue to recommend Naspers, good company making great progress.


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