The shares of iOCO continued their upward march on Friday, adding to a run that has seen its equity appreciate by more than a quarter so far in 2025, as market players embrace an intense approach to shareholder activism at the technology group.
This comes a day after former acting boss Marius de la Rey stepped down from the JSE-listed company, formerly known as EOH Holdings, the latest in a series of leadership changes at the group since shareholders took matters into their own hands.
On Thursday, the group said De la Rey had quit as interim CEO and executive director of the company, effective from February 14.
The group announced the appointment of joint CEOs Rhys Summerton and Dennis Venter to fill the leadership gap. Both had been nonexecutive directors of the group and hold 25% of iOCO’s equity between them.
Business Day understands that De la Rey had been a strong candidate to take over permanently as CEO, after the departure of former boss Stephen van Coller.
The market appears to be in favour of the changes.
After gaining more than 10% on Thursday, iOCO shares added another 8.87% to their value on Friday, closing at R3.07. So far in 2025, the stock is 25.82% higher, contributing to the 162.39% gain more than the past 12 months.
The group is now worth R1.6bn.
Sector peers Altron, Datatec and Mustek have also done well more than the 12-month period, up 108%, 24% and 16%, respectively, while Bytes Technology Group, Ayo Technology and 4Sight are down 29%, 30% and 38%, respectively.
EOH’s share price has plunged almost 90% in the past five years, well underperforming the JSE all share index, the broadest measure of SA’s stock market performance.
Operationally, the company has been showing flickers of hope, returning to profitability, but it has struggled to grow its revenue, which has shrunk by more than 10%.
Disillusioned with the erosion of value at this once-thriving tech firm, shareholders initiated a plan aimed at revitalising it.
The strategy includes expanding the iOCO and international unit, cutting unnecessary costs and changing leadership if required.
On Friday, the company said its objectives would be achieved through a renewed focus on talent development and strategic capital allocation.
“To further support these objectives, the company has introduced a revamped incentive model designed to align with its goals. The new model combines cash incentives with performance-based rewards tied to share price growth. Importantly, the scheme includes both executive directors and business heads, ensuring that leadership remains fully committed to the company’s long-term success.”
It said the restructuring initiatives were largely complete, and iOCO was now entering a phase of growth and investment.
“The company is actively exploring potential acquisitions to strengthen its market position and drive future growth. The public sector represents a key focus area with significant growth opportunities, and iOCO continues to prioritise this segment while maintaining its strong position as the preferred technology provider for many corporate and blue-chip companies,” said the group.
That strategy appears to be bearing some fruit.
The group expects to report headline earnings per share, which strip out the effect of one-off financial events, of between 19c and 21c for the six months ended January 2025. This is between 270% and 290% higher compared with the headline loss of 11c in the previous comparable period.
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