One of Africa’s largest e-commerce companies, Jumia Technologies, has officially announced its listing on the New York Stock Exchange (NYSE).
The company’s share reportedly soared by 75% during its Friday NYSE debut, even as it traded at $25.46 by close of business. This pegged the company’s valuation at $1.9 billion as at close of business, Friday.
Commenting on the official listing, Sacha Poignonnec and Jeremy Hodara, the company’s Co-Founders and Co-Chief Executives, unanimously expressed their delights over the development.
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.”
This is not your usual IPO
Jumia‘s public listing is not the traditional Initial Public Offering (IPO). Instead, it is an American Depository Receipt (ADR), and the individual shares are referred to as American depository shares (ADS).
What is American Depository Receipt?
ADS is a U.S. dollar-denominated equity share of a foreign-based company available for purchase on an American stock exchange. ADSs are issued by depository banks in the U.S. under an agreement with the issuing foreign company.
Is Jumia acting snobbish to Nigerian investors?
Jumia‘s listing on the New York Stock Exchange comes at a time its largest shareholder, MTN Group, is considering listing on the Nigerian Stock Exchange. Jumia’s move to list on NYSE may be considered as a snub to NSE and Nigerians, the country that is largely linked to the success story and growth of Jumia in Africa.
Jumia‘s IPO-type excludes any Nigerian investor from participating in the purchase of the e-commerce firm’s shares. Stakes in Jumia are only available to American investors for now.
As stated in its filing, the e-commerce company is looking to attract investors, and with its listing on NYSE, it’s easy to predict the kind of investors Jumia is seeking.