Net cash burn weighs on Kinnevik shares

Kinnevik AB

18/10/2023 08:25

** Shares in Kinnevik  KINVb.ST  fall 5% after the Swedish
investor posted its Q3 figures
    ** Danske Bank analyst Oskar Lindstrom notes that Kinnevik
continues to invest and reduce net cash "at a time when there
seems to be no improvement in the exit market for growth stocks
on the horizon"
    ** The investor's total investment rose to SEK 1.49 billion
($136.44 million) in the quarter, while net cash was down at
7.64 billion from 12.53 billion a year earlier
    ** If Kinnevik continues at this rate, net cash will be down
at 1.7 billion in a year, Lindstrom says, adding that it is "not
a fun position to be in" when the market is likely to value cash
higher than the company's private investments
    ** The investor's net asset value was down at SEK 50.78
billion at end-Q3, from 57.98 billion a year earlier
    ** Kinnevik writes down the value of its investment in
last-mile delivery company Instabee, citing an "e-commerce
market with significantly contracting volumes and
price-sensitive consumers opting for cheaper delivery options"
    ** Shares are on track for their worst day in seven months 


($1 = 10.9203 Swedish crowns)

 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))