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Jumia becomes first African start-up to list on New York Stock Exchange

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5 years ago

April 13, 2019

Jumia Technologies, a pan – African technology company , has listed on the New York Stock Exchange ( NYSE ) , becoming the first- ever technology company from Africa to list on the world ’ s largest stock exchange.
The largest e – commerce operator in Africa started its first day of trading with an opening price of $ 14 . 50 but the stock traded at the close of the day at $ 25 . 46 per share .

The initial public offering ( IPO ) of the pan -regional tech start – up , founded in Lagos in 2012 , surged more than 75 per cent on its first day of trading at NYSE on Friday .
Jumia Nigeria CEO Juliet Anammah , was present to ring a ceremonial bell when the company ’ s stock began trading on the floor of NYSE .

Mr Alex Ibrahim, Head of International Capital Markets at the NYSE , told the News Agency of Nigeria that Jumia listed as an African technology company on the stock exchange.

According to him , however , Germany was only Jumia’ s country of incorporation and the technology giant was a pan – African company .

“ We are very excited about Africa because what we saw here today was amazing . This company priced extremely well , traded up largest volumes .

“ So, that showed the interests by investors not only very large institutions but even the retails here in the U . S . , the dynamics was extremely impressive .

“ We are expecting to see other companies from the region in different segments of the tech space to potentially consider U . S . listing, ” he said .

Ms Lisette Kwong , Corporate Communications officer , Intercontinental Exchange at the New York Stock Exchange, also told NAN that Jumia ’ s IPO was set at $ 14 . 50 but it actually opened and closed at higher prices .

“ Last night before the stock opened, it was set at the price of $ 14 . 50 . The opening price was $ 18 . 95 and then it closed at the end of the day at $ 25 . 25 . So, it was really great , ” Kwong said .

According to Ibrahim , Jumia had a 30 per cent bump at the opening and then continued to trade up until the end of the day . So as we said , it was a very successful transaction ; a lot of demand.
“ The interests by the U . S . investors was extremely strong so I’ m assuming that investors will continue to look into Jumia because they provide the vehicle to tap into the region that is growing and providing access to U . S . investors to buy these products that actually mirrors the growth of the region , ” Ibrahim said .

He said Jumia chose to list on New York Stock Exchange as against NASDAQ , which was usually traditional technology companies, because it saw the benefits .
Ibrahim said NYSE had large volatility than its competitor , NASDAQ , adding that NYSE provides more visibility , certainty of execution and when companies do transactions , they trade very well .
( NAN)