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NIGERIA: Africa’s Foremost e-Commerce Giant-Jumia, Eyes NYSE Listing

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Jumia Becomes First African Tech Company on NYSE. Photo Credit: PIUS UTOMI EKPEI/AFP/Getty Images via Marketplace

Africa’s online marketplace; Jumia Technologies AG is set to break new frontiers. The foremost online retailer on Tuesday, March 12th filed an application for its Initial Public Offering (IPO), a move that will enable the e-Commerce giant to sell its shares on the New York Stock Exchange (NYSE).

Jumia, headquartered in Lagos Nigeria, is operational in 14 countries including Nigeria, Kenya, Morocco and Egypt amongst other countries throughout the continent, and has over 4 million active subscribers on its platform.

The African e-commerce giant is founded by French entrepreneurs, Sacha Poignonnec and Jeremy Hodara, who hold a little over 2 per cent shares of the company respectively.

The proposed filing document by Jumia stated that “We intend to benefit from the expected growth of e-Commerce in Africa through the investments that we have made and the extensive local expertise that we have developed since our founding in 2012,”

“Through our operations, we have developed a deep understanding of the economic, technical, geographic and cultural complexities that are unique to Africa, and which vary from country to country. We believe that our deep understanding has enabled us to create solutions that address the needs and preferences of our sellers and consumers in the most comprehensive and efficient way,”

According to report, the pan-African conglomerate expects approval of its application by the U.S Securities and Exchange Commission (SEC) to enable it to list its shares on NYSE; a move that will make the company the first African e-Commerce and tech company to be listed on NYSE.

According to records, in Q4 of 2018, Jumia accumulated losses of nearly $1 billion, with losses widened to $195.2 million on revenue of just $149.6 million. The company’s financial analysis also suggests that the company is losing cash with its operating cash flow reading in the negative of $159.2 million.

Once listed, the company will trade as JMIA on the NYSE. According to speculations, the company could be valued at $1.5 billion, when it is approved for trading on the floor of NYSE. Further details of how many shares will be sold by the company and the price the shares will be traded at is yet to be disclosed.

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