Jumia Technologies IPO: What You Need To Know

The self-proclaimed "Alibaba of Africa" -- or perhaps the Amazon of Africa -- is set to hit U.S. markets April 12. Here’s what you need to know about the first e-commerce platform operating in Africa to hit the NYSE.

The Offering

Jumia Technologies will issue 13.5 million shares on the New York Stock Exchange under the ticker "JMIA," according to the firm’s F-1 filing. Priced between $13 and $16, the offering will represent 17.6 percent of outstanding shares.

Underwriters include Morgan Stanley, Citigroup, Berenberg, RBC Capital, Raymond James, Stifel Nicolaus and William Blair.

Jumia qualifies as both an emerging growth company and foreign private issuer under U.S. law, which exempts management from certain SEC disclosure requirements.

Editor's note: Jumia was scheduled to debut April 11. The company confirmed the evening of April 10 that it was pushing back its debut by one day.

See Also: IPO Outlook For The Week: African E-Commerce, Digital Management, Software Solutions

The Company

Founded in Germany in 2012, the e-commerce platform leads pan-Africa with its marketplace, logistics service and payment solutions.

Last year, the marketplace connected 4 million active consumers and 81,000 sellers across 14 countries that account for 72 percent of Africa’s GDP. In 2017, it had seen just 2.7 million consumers.

By management’s assessment, Jumia faces a vast and growing total addressable market. Last year, less than 1 percent of retail transactions in its geography took place online. In China, that number was close to 24 percent.

Jumia expects continued market share expansion as Africa’s economy improves, governments invest in infrastructure, and urbanization accelerates. Internet penetration and consumer adoption of supporting technology further improves Jumia’s outlook.

To supplement the marketplace, Jumia’s logistics segment delivered 13.4 million packages in 2018, and its JumiaPay service supported 54 percent of fourth-quarter orders in Nigeria and Egypt.

Until January 2019, when it formally registered as a German stock corporation, Jumia conducted business through Africa Internet Holding GmbH, a German LLC.

The Finances

In 2018, Jumia recorded a €170.4 million loss on €130.6 million in revenue. The previous year, it lost €165.4 million on €94 million in revenue.