African e-commerce startup, Jumia opens shares at $14.50 in NYSE

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Finally, the African e-commerce giant gets a ‘green light’ to enlist on the New York Stock exchange (NYSE)

Jumia’s share is now purchasable on the New York Stock Exchange(NYSE), and it will be selling at an initial price of $14.50 (or ₦5,220) which is the overall estimated Initial Public Offering(IPO). This latest development is coming right after several months of gossips informing that the Pan-African e-commerce company has been able to book a space in the NYSE.

With the latest offering, Jumia automatically becomes the first Africa e-commerce to secure a position in the NYSE market which is considered as a major in the global Stock Exchange Market (SEM). And while the new offering is backed by a Security and Exchange Commission (SEC) filing- Jumia indicated it is offering 13,500,000 ADR shares, for an opening price spread of $13 to $16 per share, representing 17.6 percent of all company shares. The IPO could raise up to $216 million for the internet venture.

In addition, the latest IPO marks another milestone for Jumia and apart from offering more visibility for the company, it can now boast as a public orientated company. Dated back to 2016, the company became the first African startup unicorn, achieving a $1 billion valuation after a funding round that included Goldman Sachs, AXA and MTN.

There’s a lot to breakdown on Jumia’s going public. The company is often dubbed the “ Amazon of Africa,” and like Amazon, Jumia comes with its own mixed buzz. Jumia’s SEC F-1 prospectus offers us more insight into the venture, and perhaps any startup from Africa, thus far.

About Jumia

Starting in Nigeria, Jumia is an online marketplace in Africa for electronics, and fashion among others. It has partnered with more than 50,000 local African companies and individuals and is a direct competitor to Kilimall in Kenya and Konga in Nigeria.

Jumia’s original co-founders included Nigerian tech entrepreneurs Tunde Kehinde and Raphael, but both departed in 2015 to form other startups in fintech and logistics after which it is now been headed by CEO Juliet Anammah. The company created many of the components for its digital sales operations. This includes its JumiaPay payment platform and a delivery service of trucks and motorbikes that have become ubiquitous with the Lagos landscape. Jumia has extended this infrastructure as an e-commerce fulfillment product called Jumia Services.

Jumia has also opened itself up to Africa’s traders by allowing local merchants to harness Jumia to sell online. The company has over 80,000 active sellers on the platform using the company’s payment, delivery, and data analytics services with the hope of becoming a global competitor to the likes of Amazon, but of course, that is only a matter of time for the fast-growing e-commerce platform.

Note- The ‘JMIA’ as it is been code-named on the NYSE has proven to be profitable stock as it has risen more than 32% in value as at the time of writing this article, so you may want to jump on the already moving train.

 

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