Georgia Capital - A portfolio of market leaders in Georgia

Georgia Capital (GCAP) has announced an updated strategy centred around: capital-light opportunities with the potential to reach an exit valuation of more than GEL300m; deleveraging at both the holding and portfolio levels; and putting ESG at the core of its investment approach. It will aim for regional expansion of its large, capital-light businesses (at present mainly the retail (pharmacy) business) and continue its capital allocation to investment stage businesses (renewable energy, education and clinics & diagnostics), as well as further share buybacks. GCAP’s one-year NAV total return (TR) to end-March 2022 in GEL terms was 12.4% (31.7% in sterling terms), mostly driven by the successful sale of its 80% stake in the water utility business. In Q122 alone, NAV declined by 16.5%, primarily due to the impact of higher discount rates, lower peer multiples and the decline in Bank of Georgia’s share price.