Giovanni Ravazzotti loses $18 million in two weeks from Italtile stake

Feyisayo Ajayi -
Key Points
  • Giovanni Ravazzotti’s 33.88% stake in Italtile has dropped by R322.4 million ($18.01 million) after shares slid 5.52% on the JSE.
  • Italtile’s market capitalization has fallen below $1 billion as shares dropped from R13.05 ($2.036) to R12.33 ($1.954).
  • Despite volatility, Italtile's year-to-date performance is up 11.99%, reflecting resilience amid market challenges.

South African businessman Giovanni Ravazzotti, founder and chairman of tile and bathroomware giant Italtile Limited, has experienced a notable decline in the market value of his stake following a recent pullback on the Johannesburg Stock Exchange (JSE). 

According to data tracked by Billionaires.Africa, the market value of Ravazzotti’s 33.88-percent stake in Italtile over the past 15 days has dropped by R322.4 million ($18.01 million) as the company’s shares slid by 5.52 percent.

Italtile’s shares, which traded at R13.05 ($2.036) on Aug. 26, have fallen to R12.33 ($1.954), dragging the company's market capitalization below the $1-billion mark. Ravazzotti, a key figure in South Africa’s business scene, holds 447.7 million shares in the company, which have fallen in value from R5.84 billion ($326.5 million) to R5.52 billion ($308.5 million).

Volatility follows recent gains

Ravazzotti's stake in Italtile has recently declined, reversing earlier gains that had boosted his holdings to over $320 million. This reflects the recent challenges faced by the JSE-listed company amidst broader market volatility, which has erased much of the earlier gains.

Despite this turbulence, Italtile remains a top figure in South Africa's retail sector, operating iconic brands like CTM, TopT, and U-Light. The company's year-to-date performance, up 11.99 percent, showcases its resilience. A $100,000 investment in Italtile shares at the start of the year would have yielded a profit of $11,990, with the investment now worth $111,990.

Outlook and market sentiment

Market analysts remain cautiously optimistic about Italtile's long-term prospects, despite the recent pullback. Its robust retail footprint and vertical integration in tile manufacturing and distribution provide a sturdy buffer against economic headwinds, positioning it for resilience.

As a bellwether for consumer spending health in South Africa, Italtile's recovery could signal broader economic resilience. Notably, Ravazzotti, as chairman, continues to play a pivotal role in shaping the company's strategic direction.

His significant stake in the business means his wealth is closely tied to its performance, and while market fluctuations have caused some volatility, his net worth remains substantial, reflecting his enduring influence in South Africa's business landscape.