Franklin Templeton's Growth Opportunities Fund has cut the value of the 11,829 shares it bought from A$28.2 million to A$18.7 million, effectively valuing the ...
Franklin Templeton is the only Canva investor to have so far written down its recent round investment in the company by such a significant amount. The US tech stock sell-off has seen an investor in Canva’s most recent raising round cut the value of its shares by one-third, which suggests a huge market correction. The fund revealed its 33.5 per cent paper loss in a March 24 filing with the US corporate regulator.
Australian graphics design company Canva has soared to new heights in recent years but there's now a slight blip on its track record.
Using that same logic, Franklin Templeton thinks Canva might be worth a third less than its current value, effectively valuing the $54.5 billion company at around $37 billion. A Canva spokesman wouldn’t confirm this to news.com.au but said cash flow was not an issue as they had $US700 million ($A970 million) of pure cash in the bank. Stream more business news live & on demand with Flash. 25+ news channels in 1 place. A Canva spokesman said the company was not concerned by the news and that they are still in “a very strong financial position”. New to Flash? Try 1 month free. But now, one prominent investor appears to think the tech company is overvalued by a third of its price.
Canva takes hit as investor slashes value of shares by 33pc ... Melanie Perkins and Cliff Obrecht with Cameron Adams (left), Canva's third co-founder. Franklin's ...
Michael Baileywrites on entrepreneurship and the arts. In the US public markets, stellar tech names have fallen, despite the resilience of their business models. “Canva is an extraordinary company, and it has the potential to continue growing for many years to come and evolve into one of the most important technology companies globally,” he said. The sell-off of technology on public markets had in one way been a benefit to Canva, he added, as the volatility had sent a record 260,000 job applications its way in the past year. However, Franklin’s marking of its Canva shares to lower public market multiples means that any Canva raising in the near future could be a “down round” – one struck at a lower valuation than the most recent – which is a proven destroyer of confidence among investors, staff and even customers. In a sign that Canva is not immune from the tech sell-off in public markets, which has pushed the Nasdaq down 17 per cent in the past 6 months, Franklin Templeton’s Growth Opportunities Fund has slashed the value of the 11,829 shares it picked up in the raise from $US20.2 million to $US13.4 million ($28.2 million to $18.7 million).
APRA expects to begin consulting on updated prudential guidance on investment governance and asset valuations later in the year. The regulator's review found ...
Super funds that fail to keep their unlisted assets up to date are transferring value from those who remain in the fund to those who leave. Australia’s super funds must manage for daily liquidity while holding and increasing the proportion of assets for the long term in unlisted form. APRA’s concern about the weaknesses in the processes used by super fund trustees to assess the valuation of unlisted assets arose following the COVID-19-induced panic in the sharemarket in March 2020. Others took advantage of the government’s super withdrawal option to cash out up to $20,000 in super at the bottom of the market. The lack of uniformity in the valuation of unlisted assets is exercising the minds of regulators worried about extreme volatility in markets. It is a happy coincidence that Franklin Templeton’s 30 per cent write-down of its stake in Canva comes in the same month the prudential regulator put the heat on certain superannuation trustees to ensure valuations of unlisted assets reflect market conditions.