Having only listed on 7 April it may be rough to already suggest a sell here, but hear me out.
Hulisani is a Special Purpose Acquisition Company (SPAC) with a net asset value (NAV) of R10 a share, but is trading around R17 as I write this. That NAV is only cash, so this is a monster premium.
A SPAC intends to buy into a company and will then move to the JSE main board, continuing business as the company it has acquired. In the case of Hulisani, it’s looking at the energy sector in South Africa and the broader Southern African Development Community (SADC) region.
On the surface, this is super exciting. Further, it has the Eskom Pension and Provident Fund and Government Employees Pension Fund – holding just under 50%.
But having a pile of cash, great shareholders and an impressive looking board operating in a hot space does not ensure anything. Hulisani still has to identify and buy the right asset, and then it has to make profits. All the while shareholders are paying a premium. If I could buy at around R8 I may be interested, but otherwise I’ll just watch.