Remgro shares rise 22% despite iNAV discount - Daily Maverick

--> In South Africa, shares in investment holding company Remgro rose 22% over the past year, while its intrinsic net asset value (iNAV) increased by 4.6%. As Daily Maverick reports , the market price of the company’s shares was about 206 rand per share, while iNAV stood at 305.80 rand. Thus, the shares traded at a discount of approximately 33% to this figure.

iNAV reflects management’s estimate of the value of a company’s assets, taking into account debt and taxes that would have to be paid if the assets were sold. For holding companies, a discount to this metric is common, including because of the costs of maintaining the corporate structure. It may widen if investors disagree with asset valuations or have concerns about capital allocation.