Irish venture capital firm Molten Ventures said the carrying value of its holding in Revolut has more than doubled.
Molten’s stake in Revolut is worth about £160 million (€187.4 million) after the neobank completed a secondary share sale at a valuation of $45 billion (€40.1 billion), the company said in a statement. Molten had valued its Revolut investment at about £65 million previously.
“It is great to see the business able to reward its people for their contribution to its growth, and at a valuation which provides significant upside to our own,” Molten chief executive Martin Davis said. “This shows the benefit to our investors of the prudent approach we take to NAV and we look forward to updating on the precise uplift in more detail when we next report results.”
Molten Ventures shares rose 1.3 per cent in London.
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The impact on Molten’s net asset value (NAV) will need to reflect deductions in respect of carried interest, any further valuation adjustments and, for this particular holding, corporation tax on capital gain, Molten said. That will be for Molten’s interim results to 30 September 2024, it added.
Molten had cut the value of its holding by 40 per cent to about £54.5 million last year, as fintech valuations slumped across the board. It increased it’s carrying value to £65 million at the end of March this year. Revolut said last week it had completed a share sale at a valuation of about $45 billion, cementing its place as one of Europe’s biggest banks.
“Although there are a number of moving parts to the net gain vs. the £95m gross gain figure above, as a benchmark, we would note that at the current issued share capital, each £10m of additional NAV would add 5.3p to the NAV/share (+0.8 per cent) versus the last reported NAV,” Goodbody analyst Patrick O’Donnell wrote in a research note.
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