Rain's incredible valuation

Jan

Jan

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Rain's incredible valuation per subscriber

Rain’s valuation per subscriber is 11 times higher than Vodacom, 15 times higher than Telkom, and 33 times higher than MTN. This was revealed in a recent analysis of the valuation per subscriber of South Africa’s main mobile operators.

African Rainbow Capital’s (ARC’s) interim financial results for the six months ended 31 December 2020 show that it values Rain at R17.1 billion.

ARC is a 20.4% shareholder in Rain. This shareholding, valued at R3.493 billion, contributes 27.3% to the ARC fund’s total invested assets.

Rain is therefore a core part of ARC’s success, and an accurate valuation is important to give the correct view of ARC’s portfolio.
 
Pic of "Prominent Rain shareholders"... I would rather see these peeps hanging their heads in shame. They have a LOT to do, to mend the bridges they have burnt with terrible service and misadvertised products.
 
I wonder if those subscribers are aware of this.
I have never used Rain and never will, but I very seldom see anyone that is happy with their services.
 
Look - the more I hear of Rain the more it seems like the most epic pump-and-dump scheme ever. We have big names talking it up and mystery out-of-whack valuations. Somebody is going to take a big writedown. I am disappointed in Michael Jordaan in being part of this insanity. It can only end in tears.

Not that rain might be a bad business -- there is definitely a lot of potential. But in terms of valuation? Ba!
 
Rain value is not in their subscribers, it's in the value of the spectrum they have allocated to them
 
Sapphiron said:
Rain value is not in their subscribers, it's in the value of the spectrum they have allocated to them
Click to expand...
And by that metric Cell C should also have a high valuation... you need to turn spectrum into subscribers and cash. Assets are almost worthless unless you can turn them into revenue. And if the spectrum auction is successful then rain's valuation should also crash.
 
Often new companies are overvalued in their books to show incorrect figures and over value the company to steal money from the PIC investments. Many people who work at the PIC have no idea on Valuations of companies and nobody even bothers to interrogate a companies stated values versus other companies operating in the same environment. so tomorrow when the shareholders want to a capital injection they approach the PIC with the high valuation and get an injection of R5 Billion investment from the PIC for something that is worth Less than R500 Million. Everyone's doing it. The list of companies is too long guys that have stolen money from the PIC.
 
All they have to do is keep billing customers months after they’ve cancelled.
 
So, with all these valuations, and so on, what exactly happened at Rain? Their website is bare bones - just the products, no general info, no customer communications (like hey, here is our 5G rollout plan, here is an outage map). Standard ISP stuff. Their social media went dead at the beginning of 2020, and they were frequent posters before. Go look on their Facebook or Twitter pages - tumbleweeds. How is a suposedly giant ISP like this so **** at having a public face?

Let's not go into their support desk issues too (besides the rep on here who is great).

I mean, something doesn't add up right?
 
So, with all these valuations, and so on, what exactly happened at Rain? Their website is bare bones - just the products, no general info, no customer communications (like hey, here is our 5G rollout plan, here is an outage map). Standard ISP stuff. Their social media went dead at the beginning of 2020, and they were frequent posters before. Go look on their Facebook or Twitter pages - tumbleweeds. How is a suposedly giant ISP like this so **** at having a public face?

Let's not go into their support desk issues too (besides the rep on here who is great).

I mean, something doesn't add up right?
 
Johand said:
And by that metric Cell C should also have a high valuation... you need to turn spectrum into subscribers and cash. Assets are almost worthless unless you can turn them into revenue. And if the spectrum auction is successful then rain's valuation should also crash.
Click to expand...
Speaking under correction (not sure if it is publicly acknowledged), but don't they have a big roaming agreement with Vodacom, that makes for the bulk of their revenue.
 
This is what ARC values it at, not what the market values it at, you can't compare the JSE listing value vs ARC who will obviously overvalue it.

@Jan this has been pointed out every time I've seen this article.
 
How? Why? Rain sucks damp smelly orangutan balls.
 
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