By Emma Wallis, News editor, Trustnet, 22 November 2024:
Chrysalis Investments, which invests in high growth businesses using technology to transform their sectors, is recovering after a difficult couple of years.
Its share price has gained ground in recent months, as an initial public offering (IPO) is on the horizon for one of its largest holdings, Klarna. The discount has narrowed too, from about 48% in January to 32% currently.
It has also been attracting new shareholders. AVI Global and Unicorn Mastertrust initiated positions in January and July 2024, respectively.
Below, Trustnet investigates whether this could be a good entry point into Chrysalis.
Peaks and troughs
Chrysalis has been on a rollercoaster since coming to market in November 2018. Its share price peaked at 277p in September 2021, a 23% premium to its net asset value (NAV), but fell to 53p in 2023 after a period of poor performance.
James Carthew, head of investment companies QuotedData, said: “The discount widened markedly when interest rates started to rise and investors became more wary of backing unprofitable and cash-consumptive companies.”
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