Jumia Launches Initial Public Offering This Month
Jumia announced their listing on the New York Stock Exchange in April. The company already filed its S1 documents last month to go public in the United States.
Jumia filed its updated listing before April with an $8 maximum share-price target. Jumia plans to raise a quarter billion dollars in its debut. Jumia is known as the leading pan-African e-commerce platform. The company's market opportunity is massive since it's land area is 24 percent wider than North America and its population is twice the western continent.
Last week, Jumia set a price range of $13 to $16 per share. The company plans to commence an investor roadshow like most companies intending to list.
According to reports, it is possible that the share's price gets higher than the current price range. The United States' Lyft, a ride-hailing company, launched its IPO last week at an initial price between $62 and $68 dollars. The company later launched the IPO at $72 per share. Lyft reduced its losses from a percent-of-revenue perspective over time. The company, however, failed to-date to lower its losses in dollar terms.
The company's SEC filings said that the company operates in 14 African nations and it currently accounts for 72 percent of Africa's GDP. The company covers the highest demand for e-commerce despite operating only in Africa.
Aside from its operations in e-commerce, the company also works as an inline payment tech through the JumiaPay and as a logistics services provider through Jumia Logistics. The company will offer investors a wide marketplace for their products. It can also serve as a payment services firm to assist the companies to sell their goods. It can also provide logistics and delivery services for companies.
The company's report showed that its revenue made a 38.9 percent growth increase from 94 million Euros in 2017 to 130 million Euro in 2018. However, the firm also suffered its biggest loss for the year during the same period from 165.4 million Euro to 170.4 Million Euro. The company closed out in 2018 with 100.6 million Euros in cash through fundraisers.
The data from Crunchbase showed that the company raised $767.7 million to date. The company is reported to have a market price of a billion Euro at the time of its 360 million Euro investment.
Reports said that Jumia offers 13.5 million American depository shares for purchase. The e-commerce giant could raise as much as 216 million if it is fully sold.