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Market Digest Nigeria

Business

Jumia to launch IPO on NYSE

Jumia
  • Jumia to launch IPO

African e-commerce platform Jumia has filed to launch its initial public offering (IPO) on the New York Stock Exchange according to documents from the Securities and Exchange Commission. The e-commerce platform did not yet provide specifics on the IPO details, such as the timeline of the listing or share price.

Jumia’s largest shareholders are MTN with 31.28 percent, Rocket Internet with 21.74 percent and Millicom with 10.15 percent. Orange also holds a 5.8 percent stake in Jumia and has a seat on its board.

Jumia generated a net loss of EUR 170.4 million in 2018, versus a loss of EUR 165.4 million the previous year. The company’s revenues rose 28 percent to EUR 130.6 million and it said it reached an adjusted gross profit in its largest and most mature market Nigeria, in the second half of 2018. While operating cash flow remains negative, the group ended the year with EUR 100.6 million in cash. The IPO is expected to improve its financial flexibility and increase the company’s public profile, while also creating a market for its shares.

Jumia said it had 3.0 million active consumers on its marketplace at the end of 2018, up from 2.7 million a year earlier, and 83,000 active sellers. Gross merchandise value reached EUR 828.2 million compared to EUR 507.1 million in 2017. In addition to relying on mobile money agreements with its shareholders, the company has launched its own Jumia Pay app to facilitate purchases on its platform.

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