South African tech mogul Zak Calisto faces $17-million loss in Karooooo stake

Feyisayo Ajayi -

Key Points:

  • Zak Calisto’s wealth dips $16.7 million as Karooooo shares slide.
  • Stock price decline pushes company’s valuation below $890 million.
  • Year-to-date, Karooooo shares are up 18%, offering positive returns.

South African tech tycoon Zak Calisto has seen a substantial decrease in his wealth due to a recent drop in the market value of his shares in Karooooo Limited, a Singapore-based global mobility Software as a Service (SaaS) platform.

According to stock market data tracked by Billionaires.Africa, Calisto’s stake in Karooooo has declined by $16.68 million in just 10 days. This decrease is attributed to local investors trimming their holdings in the company, which is renowned as a top global mobility provider.

Previous surge followed by downturn

This downturn comes after a significant surge in Calisto’s wealth between May 15 and 21. During this period, the market value of his stake in Karooooo Limited jumped from $616.87 million to $673.28 million, marking an increase of $56.4 million.

Karooooo, which was founded in 2001 as a stolen car recovery services provider in South Africa, has since evolved into a leading mobility platform. The company’s shares are listed on both the Nasdaq Stock Exchange and the Johannesburg Stock Exchange.

Impact on market value and investor returns

Karooooo shares on the Nasdaq Stock Exchange have dipped 2.44 percent, falling from $29.46 on May 24 to $28.74. This decline has brought the company’s market capitalization below $890 million, causing notable losses for investors.

Calisto, who holds a 74.73-percent stake in Karooooo, equivalent to 23,168,811 shares, has seen the market value of his stake drop by $16.68 million, from $682.55 million on May 24 to $665.87 million at present.

Despite this setback, Calisto remains one of Africa’s leading tech entrepreneurs, underscoring Karooooo’s continued prominence in smart transportation management.

Your Money and Your Life

Even with the recent decline in Karooooo’s share price, the company‘s shares have delivered impressive year-to-date returns to investors, highlighting the resilience of Karooooo’s resilience as a top global mobility provider.

Karooooo shares have risen by 18.27 percent YTD, reflecting strong investor confidence. A $100,000 investment at the start of the year would now be worth $118,270, indicating a gain of $18,270.