Revego IPO: The good, the bad and the ugly On the Biznews Power Hour, CEO of JSE-bound Revego Africa, Reyburn Hendricks, shared his insights on the prospects of the renewable energy fund that currently has assets solely in South Africa. The timing of the IPO seems opportunistic with general market sentiment euphoric and renewable energy being a thematic trend that has emerged and gained traction in recent years. The business model seems great in theory with the firm planning to distribute earnings to shareholders in the form of dividends, however, a number of risks exist. Firstly, investors need to realise that further dilution is inevitable in order to fund growth. The quantum of dilution is the scary part. Secondly, execution risk in deal-making, especially projects in Sub-Saharan Africa, which has historically been notoriously difficult for JSE-listed firms to get right. Lastly, the IPO was pulled hours before the prospective listing. – Justin Rowe-Roberts