Jumia Eyes Growth with $99.6 Million from Secondary Offering
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Jumia ($JMIA) has successfully completed a secondary offering, raising $99.6 million from the sale of 20 million ordinary shares just days after the announcement. This represents an average selling price of approximately $4.95 per share, slightly above last Friday's trading price of $4.90. Notably, Pernod Ricard, a global spirits and wine company, purchased 1.27 million shares for around $6 million.
A Wall Street analyst forecasts that Jumia may incur a $65 million loss in 2024, with its cash reserves standing at $92.8 million as of the second quarter. The $99 million raised in this offering is expected to significantly bolster Jumia's liquidity. However, the company has yet to comment on the share sale.
Jumia plans to use the funds to enhance its customer acquisition efforts, expand its supplier network, and improve its distribution infrastructure. The company will also invest in the technology supporting its vendor services and marketing division, which has been available to clients since 2021.
Despite missing its revenue targets for the second quarter of 2024, investor confidence in Jumia's ability to thrive in the African e-commerce market remains strong, which is essential for the company’s ongoing growth.
Source: Tapiwa Matthew Mutisi / Innovation Village
Jumia
Jumia Nigeria is the largest online shopping website in Nigeria, offering a platform where customers in any part of Nigeria can find and shop for all they need in one online store.
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