Germany’s Rocket Internet has confirmed that its African-based eCommerce startup, Jumia has filed for an initial public offering on the New York Stock Exchange, NYSE.
It would be recalled that PageOne.ng had reported last year that Jumia’s majority owner, Rocket Internet was looking at divesting and or reducing its stakes in the loss-making online retailer via an IPO but the company did not confirm nor deny the reports.
According to TechCrunch, the valuation, share price and timeline for public stock sales will be determined over the coming weeks for the Nigeria-headquartered company.
Poignonnec would not pinpoint a date for the actual IPO but noted the minimum SEC timeline for beginning sales activities (such as road shows) is 15 days after submitting first documents. Lead adviser on the listing is Morgan Stanley .
The IPO will mark the first time an African startup (foreign-owned) will be listed on a global stock exchange.
Jumia operates across Nigeria, West and North African countries where it has been struggling to breakeven across all its markets of operations.
In Nigeria, Konga, Jumia’s main competitor was no longer sustainable for Kinnevik, Naspers and other core investors that it was sold for less than $5 million (according to people familiar with the matter) to Nigeria’s Zinox Group after the company could not sustain its levels of debt.
More details later…