Sagarmatha Technologies has announced plans to list on the Johannesburg Stock Exchange, where the company aims to raise over R3 billion.
The company owns numerous assets in the media and online marketing space, which includes 95% of news wire agency ANA, 60% of IOL Property, and 100% of Independent Online.
The company also owns 83.3% of Loot Online, with the remaining 16.7% owned by Loot Founders Proprietary Limited.
Loot was started in 2003 as an online bookstore and by 2010 had added music, DVDs, and games to its product mix.
In March 2015, Sagarmatha Technologies acquired a 75% shareholding in Loot. This shareholding increased to 83.3% when Loot repurchased 10% of its shares from Loot Founders.
Subsequent to the acquisition, Sagarmatha Technologies made advertising space across its media channels available to Loot and provided preference share funding.
The deal allowed Loot to lease warehouses in Midrand and Cape Town, increase its inventory holding, develop a Loot mobile app, and market Loot.
Loot CEO Gary Hadfield, who joined the company in 2011 from Kalahari.net, currently oversees around 100 staff members – of whom approximately three quarters are employed in the warehouses and in customer service.
Sagarmatha Technologies’ pre-listing statement revealed details about Loot’s revenue and growth in recent years.
According to the statement, Loot generated R149.97 million in revenue for the year ended December 2016, up from R93.29 million the previous year.
The online retailer made a loss of R3.781 million in 2016, an improvement over the loss of R11.854 million in 2015.
Sagarmatha Technologies said Loot increased revenue by 38% in 2017, which means the company generated an estimated R207 million last year.
The tables below provide an overview of Loot’s performance.
|Growth for Financial Years|
|Growth||31 December 2014||31 December 2015||31 December 2016||31 December 2017|
|December 2017||R206,960,000 (estimate)||–|