Following last week’s successful listing of Jumia Technologies AG on the New York Stock Exchange (NYSE), some Nigerians spent the weekend discussing the development and its implications for the Nigerian business environment.
Someone even went as far as tweeting that the e-commerce company is now valued more than Nigeria’s tier-1 bank — Guaranty Trust Bank Plc (GTB).
As Nairametrics reported, the e-commerce giant officially announced its listing on the New York Stock Exchange last week. 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.
Jumia on the US stock exchange is worth more than GTB on the Nigerian Stock Exchange. You know what that means….?
That meins we die there and make some money. But no, this time around I am going all alone. When Diamond bank Eurobond matures, we talk business.
— Bill Gates’ Maiguard (@knightofdelta) April 13, 2019
So, is Jumia really valued more now following its successful listing on the New York Stock Exchange? The answer is an emphatic NO.
Comparing Jumia’s NYSE valuation with GTBank’s NSE market capitalisation
While Jumia‘s performance during its NYSE Initial Public Offering is commendable, it is false to assume that it is now valued more than Guaranty Trust Bank Plc; at least wrong for now.
As stated above, the company’s valuation stood at $1.9 billion after it traded at $25.46 on the NYSE, Friday.
Guaranty Trust Bank Plc, on the other hand, currently has a market capitalisation of about N1 trillion on the Nigerian Stock Exchange. In dollar terms, its valuation stands at $2.8 billion, indicating about $1 billion more than Jumia‘s current valuation.
GTBank‘s stock is currently trading at N35.05 on the Nigerian Stock Exchange.
Jumia Technologies AG, was established in Lagos by two ex Mckinsey consultants — Jeremy Hodara and Sacha Poignonnec, along with Tunde Kehinde and Raphael Kofi Afaedor in 2012.
Is Jumia really an African startup?
Some Nigerians do not think the company is a Nigerian company per se, no thanks to its origin and the composition of its board of directors.
Jumia is not an African company, it only has operations here. I know the man they went to when they wanted to enter Nigeria, he refused the nasty offer and they settled for those 2 they eventually threw out like used tampon.
— Mavoro Matthew (@OrigboKay) April 15, 2019
Correct me if I'm wrong. I think Jumia is more of a Transsion holdings type of company than an African startup. Both companies are dominant on the continent and have it as their core market base.
— Adewoye Kolade (@koladeCh) April 14, 2019
“Jumia is not African startup. It is a company duly incorporated in Germany by 2 French founders who are Co-CEOs.
“They do most of their business in Africa doesn’t mean they should misrepresent identity and root. Always proper tab if Jumia represents itself an German with business objects subtantially focused in Africa. I doubt it’d dissuade investors.
“This tagline “the 1st African Tech Startup” is a lie & this misrepresentation is deemed fraudulent. You are a European Multinational penetrating the African market. Please correct your narrative. Do the right thing.”
With additional reporting by Ada Nnadiukwu…