Abelco - Small private equity investor from Sweden

Stocks
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So, this is a small private equity company located in Sweden, with holdings in interesting industries and companies. The management seems to be doing well, and a lot is happening.

Here are the company’s holdings, among the most interesting of which are iCandy Interactive, listed on the Australian stock exchange, Quickbit, listed on the Swedish stock exchange, and RightBridge.

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iCandy Interactive:

  • A company that makes mobile games
  • Growing well, and the games being released are increasingly successful
  • Last November, a huge success with the new game Masketeers, and now the release of the new game Claw Stars is underway, which, according to preliminary information, will be an even bigger success
  • Contracts signed for bringing games to the Chinese market, which may happen/be announced in the coming months
  • 34.4% ownership of the company, market cap 42 million euros

QuickBit:

  • Listed on the Swedish stock exchange
  • Has released an application for buying/selling/using cryptocurrencies
  • Just renewed its board, bringing in good expertise
  • Hot industry
  • 4.8% ownership, market cap 62 million euros

RightBridge:

  • A company focused on e-sports
  • Has acquired ownership in e-sports teams and leagues largely with its own shares
  • At least according to news reports, it intends to go public this year

Below is an analyst’s assessment of the company; the current share price is below the bear, the company’s market cap is small, but there are many options, etc.

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Not an investment recommendation, ping FIVA.

Edit: I own shares in the company.

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Maybe a silly question, but where can I buy this?

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There are no stupid questions! I own this through Nordnet myself, I’m not sure if it’s possible through all brokers. It’s worth thoroughly researching and drawing your own conclusions if it’s a new company.

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Hey there! Interesting case, and I took a small position. The portfolio is very interesting. It seems to be a similar “creeper” (mörnijä) to Sievi Capital, meaning if you believe in the company, it will probably offer good opportunities to add to your position between earnings reports.

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More money has been raised for Fatberry, a website in Malaysia where you can compare insurance policies. It was set up in April 2020, and this year, its turnover is estimated to reach 2 million euros. Motorcycle insurance comparison has now also been added to the site, which is the most common mode of transport in Malaysia.

https://blog.fatberry.com/2021/03/19/fatberry-raises-rm2-5-million-in-pre-series-a-funding/

March 23, 2021 at 9:40 AM · Cision

Abelco Investment Group increases its investment in portfolio company Fatberry Sdn Bhd, which was oversubscribed by 25%

As previously communicated, Abelco Investment Group AB (“Abelco”) has made a direct additional investment in Fatberry Sdn Bhd (“Fatberry” or “the Company”). The issue has now closed and was oversubscribed by approximately 25%.

Abelco is investing 2.1 MSEK in the new issue and, after the new issue, has increased its effective ownership to 30.22%. (Abelco directly owns approximately 12%, and has a majority ownership in Fintech Asia which, after the issue, owns approximately 34% of the Company).

Fatberry, which launched in April 2020 during the pandemic, has seen consumers increase their purchases of insurance products digitally, which is what Fatberry competes in and focuses on. Fatberry is a leading B2C insurance platform that enables consumers to compare, customize, and purchase insurance products online and instantly.

Fatberry has experienced very positive growth during its first year of launch and foresees a further increased demand. With this issue completed, Fatberry is now also launching motorcycle insurance to drive further growth and meet consumer demand.

“Motorcycles are the most popular vehicle in Malaysia, accounting for almost half of the total number of vehicles on the roads. Therefore, this is a key market for Fatberry,” says Fatberry’s Marketing Manager Debbie Ang.

“With the funding raised, the next phase is to bring high-quality talent to Fatberry, further develop the platform and product offerings, and increase marketing and branding efforts. We will continue our mission to help more Malaysians buy the right insurance at the right price,” says Fatberry’s CEO John Tan.

For more information from Fatberry, click HERE (https://blog.fatberry.com/2021/03/19/fatberry-raises-rm2-5-million-in-pre-series-a-funding/)

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The newest game Claw Stars seems to be attracting a lot of people; the number of test users has been doubled, meaning the game is currently only in testing on Google Play, with a full launch for Android and iOS in Q2.

23.3.2021
https://twitter.com/clawstarsgame/status/1374118690828873728
18.2.2021
https://twitter.com/clawstarsgame/status/1362341085201059840

Here is also data measured by revenue; currently, it’s ranking between 50-100 in Arcade games in nine countries:

Quickbit also looks lively on the stock exchange.

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Here’s a notice from the other main owner of Fatberry, related to the earlier news. This same main owner owns 51% of Abelco:

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iCandy update today:

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iCandy’s 2020 financial statements published, results are positive and 2021 drivers look good:

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https://www.icandy.io/announcements/

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I agree, and Sievi Capital is probably a good point of comparison, although this one seems to be unprofitable. In these private equity firms, I think it would be good to achieve profitability, because otherwise, we are dependent on share price appreciation, and in today’s world, people want more “pure play” and less “sum of the parts.” For this reason, the unwinding of undervaluation might take a long time, and it’s certainly unpleasant if large losses are incurred while waiting for it. The company’s portfolio is indeed very interesting, and aggressive growth-oriented acquisitions have clearly been made upfront :cowboy_hat_face:

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