NIGERIA: Jumia Becomes 1st African Tech Company On NYSE

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

Africa’s foremost online marketplace; Jumia Technologies AG, after filing its applications, has achieved a trailblazing milestone by becoming the first-ever African technology company to be listed on the world’s largest stock exchange-the New York Stock Exchange (NYSE).

The African online market giant was listed on the NYSE with the ticker symbol JMIA with trading shares beginning at $14.50, however, the stock traded up at the close of the day at $25.46 per share.

The recent SEC filing indicates that Jumia is offering 17.6 per cent of all company shares with 13,500,00 ADR shared at an opening price spread of $13 to $16 dollars per share. This feat could raise about $216million for Jumia, as Jumia’s Initial Public Offering (IPO) surged more than 75 per cent on its first day of trading at NYSE on Friday.

The company’s Co-founders, Sacha Poignonnec and Jeremy Hodara expressed their excitement over the newest milestone achieved by the company.

According to a statement made available by the company, the duo credited the successful listing to the hardworking teams that made it possible. “This achievement has been made possible thanks to the hard work of our teams, the trust of our consumers, as well as the commitment of our sellers and partners. All stakeholders deserve credit for this milestone, and we are just at the beginning of a long and great journey. We are going to continue to focus on our mission and to work even harder to help consumers, sellers, partners, and all stakeholders benefit from this technological revolution.”

The Head of International Capital Markets at the NYSE, Mr Alex Ibrahim, stated that Jumia listed as an African technology company on the stock exchange.

According to him, “We are very excited about Africa because what we saw here today was amazing. This company priced extremely well, traded up to the largest volumes,”.

“So, that showed the interests by investors not only very large institutions but even the retails here in the U.S., the dynamics were extremely impressive. We are expecting to see other companies from the region in different segments of the tech space to potentially consider U.S. listing,”

He added that “The interests by the U.S. investors was extremely strong so I’m assuming that investors will continue to look into Jumia because they provide the vehicle to tap into the region that is growing and providing access to U.S. investors to buy these products that actually mirrors the growth of the region,”

Confirming the stock report of Jumia on the trading floor, the Corporate Communications officer, Intercontinental Exchange at the New York Stock Exchange, Ms Lisette Kwong, also told newsmen that Jumia’s IPO was set at $14.50 but it actually opened and closed at higher prices.

According to her, “Last night before the stock opened, it was set at the price of $14.50. The opening price was $18.95 and then it closed at the end of the day at $25.25. So, it was really great,”

Though the listing has raised concerns about the company excluding the NSE. Jumia being on the NYSE has excluded Nigerian investors from purchasing its shares.

However, the listing is also viewed as a ray of hope as it could foster and strengthen foreign investor confidence in Africa’s e-commerce industry.

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