London, UK, 23 Februar 2024

Edison issues update on Georgia Capital (CGEO): FY23 NAV TR of 20% in sterling terms

Georgia Capital (GCAP) reported a Q423 NAV total return (TR) of 7.7% in Georgian lari (GEL) terms (3.4% in sterling terms), bringing the FY23 NAV TR to a strong 26.5% (20.4% in sterling terms). The considerable increase in the sterling share price of Bank of Georgia (BoG) was the main contributor, adding c 5.1% and 19.5% to GCAP’s opening NAV in Q423 and FY23, respectively. This was further assisted by positive revaluation of all large and investment-stage private holdings, except for the hospital business. In aggregate, GCAP’s private holdings added 1.9pp to its Q423 NAV TR. NAV-accretive buybacks of US$8.3m added a further 0.9pp.

Despite the c 50% appreciation in GCAP’s share price over the last 12 months, its shares still trade at a c 52% discount to NAV (when adjusted for the post-balance sheet change in BoG’s share price). If GCAP’s stake in BoG (which at end-2023 made up 33% of total portfolio value) was valued in line with the last closing price, GCAP’s current market cap would imply a wide 71% discount to the end-2023 fair value of its private assets (with GCAP’s enterprise value excluding BoG roughly equal to the fair value of the retail (pharmacy) business alone).

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