Jonathan Jawno, a South African multi-millionaire businessman and executive, has seen his investment in Transaction Capital increase in value by more than $20 million over the past 37 days as a result of a significant uptick in buying interest on the local stock exchange.
Research conducted by Billionaires.Africa revealed that the market value of Jawno’s stake in Transaction Capital has risen by R356.1 million ($20.6 million) in the past 37 days, as investors continue to buy shares of financial services companies whose stock prices are trading at significant discounts to earnings.
The group’s shares have increased by more than 13 percent, from R36.2 ($2.1) per share to R41.1 ($2.4) per share, resulting in a price-to-earnings ratio that is significantly higher than the global consumer finance industry average.
As a result of the recent price surge, the market value of Jawno’s stake has risen by R356.1 million ($20.6 million), from R2.63 billion ($151.87 million) on Oct. 5 to R2.99 billion ($172.43 million) at the time of writing this report.
Transaction Capital is a South African financial services group that specializes in asset-backed lending and niche risk services. It is a non-deposit financial services company with operations in South Africa and Australia.
Jawno, a founding member who has served as an Executive Director of Transaction Capital since March 2003, owns a significant 9.59-percent stake in the investment holding, which equates to 72,667,000 ordinary shares. His stake makes him the group’s second-largest shareholder, trailing only Public Investment Corporation, Africa’s largest fund manager.
Despite its robust valuation, which is significantly higher than that of its industry peers, Transaction Capital stands to return impressive gains to investors, including Jawno, in the near to medium term, as its earnings growth is on track to outshine the market, with the group’s earnings growing at a sustainably higher rate than pre-pandemic levels.