South African technology mogul Zak Calisto has experienced a windfall gain of $40.88 million from his equity investment in Karooooo Limited, a leading global mobility software-as-a-service (SaaS) platform listed on both the Nasdaq Stock Exchange and the Johannesburg Stock Exchange.
In just 51 days, Calisto’s stake in Karooooo increased by a staggering $40.88 million. The surge in his holdings was driven by a substantial rise in the group’s share price between June 7 and July 27, largely attributed to sustained buying interest on the Nasdaq bourse.
Karooooo, founded in 2001, initially started as a stolen car recovery services provider in South Africa but has since transformed into a prominent mobility platform. Calisto holds a significant 74.73-percent share in the company listed on the Nasdaq stock market.
With a current market value of over $580 million from his 74.73-percent shareholding, Calisto ranks among Africa’s wealthiest technology entrepreneurs. During his tenure, Karooooo has evolved into a global provider of smart transportation management solutions.
As of press time on July 28, the shares of Karooooo were trading at $25.31 on the Nasdaq stock market, leading to a market capitalization of $783.2 million.
Over the past 51 days, Karooooo’s share price has surged by more than seven percent, rising from $23.54 per share to $25.31 per share at the time of reporting. This impressive increase in share value has resulted in significant returns to shareholders, including Calisto, who owns a majority stake in the Singapore-based tech company.
As a result of the recent surge in the company’s shares, the value of Calisto’s stake in Karooooo has skyrocketed by $40.9 million, from $543.7 million to $584.6 million.
The recent upswing in Karooooo’s shares can be attributed to renewed interest from value investors who perceive the company as currently undervalued, considering its strong financial performance.
In the first quarter of its 2024 fiscal year, Karooooo’s profit grew by 3.6 percent, reaching R161.95 million ($9.06 million), compared to R156.34 million ($8.74 million) in the corresponding period of 2023.
