CAPE TOWN - Sagarmatha Technologies, which was scheduled to list on the JSE, is still of the opinion that it is important for Africa to have its own multi-sided-platform company so that Africans are able to take control of their own technology and data and eCommerce destiny.
A source close to the company revealed that Sagarmatha received written commitments for the listing exceeding R4 billion, which excluded funds from the Public Investment Corporation (PIC).
Commitments were received from high net worth individuals, global investors with African interests and local and international fund managers, the source said. “Had the PIC subscribed, Sagarmatha might have received the capital raising target of R7bn.”
This listing has been the most scrutinised in the history of South Africa, beginning with an unprecedented interest in how MSP technology companies are valued.
Sagarmatha was required to raise at least R3bn for the private placement.
Sagarmatha joint chief executives Grant Fredericks and Gary Hadfield declined to comment on the future plans of the company at the time of compiling this report but said the company would release a statement soon.
Earlier this week, Sagarmatha said it had gone through the most rigorous of scrutiny at the JSE, and that no JSE company had ever been scrutinised like Sagarmatha had.
Mntuwekhaya Cishe, secretary-general of the Black Business Chamber, also expressed his surprise at the turn of events, saying: “There are hundreds of companies listed on the JSE and probably thousands of companies in South Africa that do not strictly and timeously, on the hour, submit their financial statements. They are not censured in this way.”
Cishe remarked that Steinhoff, currently in breach of numerous regulations of the Companies Act, continued to trade on the JSE. “Are there two sets of rules – one for black companies and another for white-owned companies?” he asked. Cishe said his organisation was now intending to approach the Equality Court and the Human Rights Commission around the seeming discrimination against Sagarmatha Technologies.
In a media statement earlier this week, general manager of issuer regulation at the JSE, Andre Visser, said the listing would not proceed because: “The JSE was not aware of the companies’ failure to comply with the Companies Act and the requirements when the pre-listing statement was approved.” Visser said the approval of the pre-listing statement of Sagarmatha Technologies “is invalid and of no force and effect”.
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In a statement on Wednesday, Sagarmatha said it was apparent that there was a general lack of understanding around MSPs in South Africa.
The company said it was its intention to benefit more than 3 million workers in South Africa, which would have come through the shareholding in Sagarmatha that included trade unions, civil society organisations, black entrepreneurs, black businesses, employees and academic institutions.