Tekcapital has reported another period of record net assets as its portfolio company readies for a NASDAQ IPO that has the potential to create further value for shareholders.
The company achieved record net assets of US$77.4 million as of June 30, 2024, compared to US$70.1 million as of December 2024. This represents approximately 10% growth, which was driven by portfolio appreciation.
The net asset value per share remained stable at US$0.33, unchanged from 31 December 2024.
The portfolio valuation increased to US$68.8 million from US$61.5 million as of December 31, 2024. Meanwhile, revenue totalled US$6.1 million, generated from services and portfolio returns, compared to US$21.1 million recorded in the first half of 2024.
These were solid results from Tekcapital. However, investors will be more interested in the upcoming Guident IPO and just how much its valuation on flotation will add to the Tekcapital portfolio.
Looking ahead, the company is now operating at a significantly lower cost base and will soon no longer be required to fund the growth of its portfolio companies, with all five of its companies publicly traded.
“The reduction in operating expenses by 50% underscores our commitment to operating efficiency and ensures that a greater proportion of returns accrue to shareholders in the future. Our strategy continues to validate itself: commercialising GenAI-centric technologies to enhance business efficiency and improve quality of life,” said Dr. Clifford M. Gross, Chairman of Tekcapital.
“This approach has not only delivered profitable growth for Tekcapital but has also positioned most of our portfolio companies to create lasting societal impact, from reducing sodium intake in more than 470 million servings with Microsalt®, accelerating the commercialisation of hundreds of new university discoveries with GenIP, enhancing pedestrian and workplace safety for thousands of individuals with Lucyd smart eyewear, and improving autonomous vehicle safety with Guident.”
Gross continued to explain that Guident’s upcoming proposed NASDAQ IPO will play a major part in the firm’s future ability to return cash to shareholders in the form of special dividends.
“Guident has made notable commercial strides, from advancing its remote monitoring platform for autonomous vehicles to securing strategic contracts and expanding its leadership team,” Gross said.
“With its S-1 now publicly filed, Guident is well on its way to a potential NASDAQ listing. We believe this IPO has the potential to crystallise significant balance sheet value and facilitate future issuances of special dividends, whilst opening the door for a broader investor base to participate in its scale-up journey.”