In a bid to go public, popular Nigerian online store, Jumia, has filed an IPO, making it a step towards being listed in the New York Stock Exchange (NYSE). Though the New York filing did not reveal details of the price of the shares and how many shares would be sold.
The African based company with its head office in Nigeria also runs operations in 14 other countries. Jumia was founded in 2012, services vary from online shopping, logistics to payment services.
In December, 2018 the company was valued at 1.4 billion euros ($1.6 billion) with shares at 14.74 euros, according to the filing. Nigeria, being Jumia’s major market makes sales by selling its own products, and taking a cut from third-party sales.
In 2018, revenues were 130.6 million euros, up from 94 million euros the previous year. However, over time losses also rose, from 165.4 million euros in 2017 to 170.4 million euros in 2018. By the end of December, accumulated losses recorded were 862 million euros, according to the firm.
In the IPO prospectus, Jumia said that the value of goods sold on its platforms is increasing at a more rapid pace than losses, from 507.1 million euros in 2017 to 828.2 million euros in 2018.
Jumia’s active users are people that have bought items at least once in the past year. This increased to 4 million at the end of last December form 2.7 million, which was a year earlier. Rocket Internet owned 21.74 percent of Jumia as of the end of December and MTN Group held 31.28 percent.
Other, smaller shareholders include Millicom International, AXA Africa Holding and Goldman Sachs.