Swvl Holdings (SWVL) stock zooms 45% after Zeelo acquisition

Follow us on Google News:
 Swvl Holdings (SWVL) stock zooms 45% after Zeelo acquisition
Image source: © Transversospinales | Megapixl.com

Highlights 

  • Dubai’s Swvl Holdings specializes in low-cost, eco-friendly mass transit solutions.
  • On Thursday, Swvl announced acquiring ‘smart-bus’ operator Zeelo.
  • The acquisition will likely complete by May 2022.

Shares of Dubai-based Swvl Holdings Corp (SWVL) jumped over 44% after it announced signing a definitive agreement to acquire ‘smart’ bus operator Zeelo for US$100 million.

The SWVL stock was trading at 44.87% higher to US$9.735 at 12:46 pm ET on Thursday.

Mass transit service provider Swvl on Thursday said it signed a definitive agreement to purchase Zeelo for US$100 million.

Swvl has recently acquired Viapool, Shotl, Volt Linesm and door2door.

Swvl and Zeelo plan to modernize public transport with emission-less mass transit vehicles. 

Also Read: 5 agriculture stocks to explore as food inflation spikes: ADM to FMC

The transaction is expected to complete in May 2022.

This acquisition will help expand Swvl’s footprints to 146 cities in 21 countries, with more than 490 corporate and institutional customer contracts. The company will provide daily bus services to students, shift workers, and white-collar professionals.

The Zeelo acquisition will give Swvl an immediate entry into the US and South Africa markets.

Also Read: Five student loan stocks to watch in April: DFS to SLM

Swvl Holdings:

Dubai-based Swvl Holdings is a technology-driven mobility company focused on providing low-cost, environment-friendly mass transit solutions. It currently offers services in 115 cities in 20 countries. Commuters use its proprietary mobile app to book buses, vans, and other rides 24/7.

The company serves customers through its Swvl Retail, Swvl Travel, and business-to-business (B2B) divisions as part of its transport-as-a-service (TaaS) model.

The platform provides a semi-private alternative to traditional public transportation.   

Also Read: SYY to KO: 5 inflation-beating consumer staple stocks to watch in Q2

Swvl Holdings (SWVL) stock zooms 45% after Zeelo acquisition 

Also Read: 5 MedTech stocks to explore as covid cases surge: VEEV to TDOC

Financials:

It launched its IPO in March 2021.

For the fiscal year ended December 31, 2021, Swvl’s revenue was US$38.35 million compared to US$17.31 million a year ago. Its net loss was US$141.42 million or US$1.19 per share diluted in FY 2021, compared to a net loss of US$29.73 million or US$0.25 per share diluted in FY2020.

Swvl’s market capitalization is US$1.13 billion. The stock price reached the highest of US$10.75 and the lowest of US$4.17 in the last 52 weeks.

Also Read: Top dividend-paying REITs to explore: WPC, EPR, CTO, LTC & SLG

Bottom line:

Swvl Founder and CEO Mostafa Kandil said, “Swvl and Zeelo share a vision and mission to provide reliable transportation that gets riders where they need to go in an affordable, safe, and environmentally-friendly manner.” He also said that Zeelo has footprints in the UK, South Africa, and the US. The acquisition is expected to boost its market position as a technology-enabled mass transit solutions provider globally.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.

Featured Articles