The Vodacom Yebo Yethu shares paid back about 100% for investors who sold their BBBEE shares on the first day of trading. There are signs that the investment still has some legs for those who are holding on to their shares and those who are entering now.
The Yebo Yethu BBBEE shares opened for trading yesterday after initial investors were locked in for five years. At inception investors paid in about R25 per Yebo Yethu shares. With the Yebo Yethu share touching a high of R56 and a low of R40 yesterday, the initial investors who sold yesterday realised a minimum gain of 75%. The few who sold at more than R50 got more than 100% return.
Yesterday’s trading statistics shows that 46594 Yebo Yethu shares with total value of R2.1 million were traded yesterday. There were about 590 trades on the day.
The share ended the day at R40.10 reflecting a huge discount to its presumed net asset value. Yebo Yethu net asset value is estimated around R94 per share by SBG Securities. However SBG has noted that the share will suffer a liquidity discount and has arrived at a figure of R56/share.
More value is likely to be created in the scheme as it pays down funding debt and realise more growth from the underlying asset being Vodacom SA.
Yebo Yethu is invested in Vodacom South Africa as part of a broader BBBEE consortium. It is important to note that Yebo Yethu is not invested in the JSE listed Vodacom Group. The scheme is invested in Vodacom South Africa which is a subsidiary of Vodacom Group. Vodacom South Africa accounts for about 80% of Vodacom Group revenue. Despite this connection there is no co-relationship between the share price of Yebo Yethu and the share price of the JSE listed Vodacom Group.
Commenting about the launch of the Yebo Yethu trading platform Vodacom Group CEO Shameel Joosub said “We’re proud of what YeboYethu has achieved in terms of true broad-based empowerment. This scheme has already paid out almost R65 million in dividends and now small shareholders across South Africa can either increase their stake or unlock the value of their investment.”
Yebo Yethu chairperson Zarina Bassa said “We started the verification process for YeboYethu shareholders back in November so that they are ready to trade straight away. We’ve also registered more than 2,000 buyers so far, with interest growing daily.
“We partnered with an experienced trading platform that handles high volume accounts for several other major BEE schemes, and we’ve also conducted extensive stress testing on the trading system, so we’re aiming for a smooth start.”
“Our main focus from here is to spread the word to make sure that all YeboYethu shareholders are aware of the options available to them, and also to empower shareholders with educational information on how to trade. We see YeboYethu as a long-term investment and we’d obviously like to keep existing shareholders on-board, but as of today those who do want to trade have the option open.”
See this piece if you want more information about the Yebo Yethu scheme.