Almost a month ago PLDT invested in Rocket Internet, an e-commerce company known primarily for bringing successful US e-commerce ideas outside of the US. An example of their products is Lazada which aims to be the Amazon of Southeast Asia.
Just a week later, United Internet also invested in Rocket Internet via new shares diluting PLDTâ€™s share. Bummer. But hey, what can you do?
Now the Rocket Internet IPO draws near. The IPO will be done via new shares which will further dilute PLDTâ€™s share. Again Bummer. But hey, again what can you do?
Well, Iâ€™m not doing anything. At the moment, that is. So maybe I can see how the IPO will impact PLDTâ€™s value.
|Raised value (EUR B)||1.34||1.48||1.61|
|Existing value (EUR B)||4.26||4.68||5.10|
|Company Value (EUR B)||5.60||6.15||6.71|
|PLDTâ€™s shares value (6.79%)||0.37||0.40||0.44|
|Market Cap (PHP B) @close 9/29||690.00|
|Market Cap (EUR B)||12.04|
|Market Cap Impact||0.28%||0.58%||0.87%|
It looks like the Rocket Internet investment is good (potentially 9.95-31.63%) but unfortunately itâ€™s just a small part of PLDTâ€™s overall asset portfolio and its post-IPO valuation will have little impact (0.28-0.87%). At the moment, that is.
PLDTâ€™s investment includes strategic partnerships â€śto drive the development of online and mobile payment solutions in emerging marketsâ€ť (thatâ€™s according to PLDT). That just might deliver dividends in the future that are not (yet) priced in.