Prosus, a wide-ranging consumer internet group and one of the largest technology investors in the world, starts trading through a primary listing on Euronext Amsterdam.
Prosus
Europe has bemoaned its lack of big internet technology companies capable of competing with U.S. and Chinese giants like Google, Facebook, Alibaba and Tencent.
Overnight, the continent’s destinies changed in the form of a $100 billion consumer internet company that listed publicly Wednesday in Amsterdam.
The companions is called Prosus, and it’s a spinoff of South African consumer internet conglomerate Naspers. Prosus said its market capitalization on its chief day of trading is roughly $100 billion, making it one of the 10 biggest consumer internet groups in the world.
“The listing of Prosus is an stirring step forwards for the group, giving global technology investors direct access to our unique and attractive portfolio of intercontinental consumer internet businesses,” Naspers and Prosus Group CEO Bob van Dijk said in a press release Wednesday.
Prosus is not a consumer internet charge itself, meaning it doesn’t offer digital services under its own brand like Facebook or Alibaba, for example. As opposed to, it invests in a portfolio of global internet firms in sectors ranging from payments and fintech (financial technology) to nourishment delivery.
The group’s best-known investment is a 31% stake in Chinese tech giant Tencent, a gaming titan and proprietor of the hugely popular messaging app WeChat. Naspers made a $32 million investment in Tencent in 2001, a bet now worth $130 billion.
Under the aegis the new structure, Prosus will hold Nasper’s Tencent stake, as well as positions in other firms like Russian collective media company Mail.ru Group and German food delivery service Delivery Hero. Naspers will debris a majority owner of the new company.
Europe playing catch-up
The addition of Prosus to the Amsterdam exchange shakes up Europe’s tech vista, with the company instantly becoming one of the biggest tech entities in the region. According to data compiled by Reuters, it is not outmatched in size by German software firm SAP, which is valued at roughly $135 billion.
Europe has lagged behind the U.S. and China as a to the heart for big tech companies. Of the 20 biggest internet companies by value in 2018, none were headquartered in Europe, agreeing to data from the World Economic Forum. Last month, reports emerged that the EU had drafted a plan for a sultan wealth fund to invest in “high-potential European companies” that could compete with U.S. and Chinese big tech determines.
“Naspers believes that the choice of Euronext Amsterdam is, and will be, beneficial to the company as Euronext markets are some of the largest, most fused and proven capital markets in Europe,” the company said in its prospectus.
Naspers outset announced its intention to list its international internet assets under a new company name, now Prosus, on the Amsterdam exchange in Slog. Prosus also has a secondary listing on the Johannesburg Stock Exchange. Analysts said one reason behind the decision was that Naspers had an outsize load on the Johannesburg exchange.
By listing directly on the Amsterdam exchange, the Prosus listing has not received as much attention as a traditional IPO, contract to Ken Rumph, an equity research analyst at Jefferies who covers Naspers. As part of the listing, existing Naspers shareholders resolution be issued new Prosus shares.
“Being listed in Europe, there’s a bigger investment pool, lots of kind of non-aggressive money and indexes that you could be part of,” Rumph said in an interview Tuesday. “There’s a sort of tactical scrap that this is a more favorable venue.”
Prosus will trade under the ticker symbol “PRX.”