Jumia Technologies AG ($JMIA), the African e-commerce giant, has effectively concluded a secondary offering, generating $99.6 million through the sale of 20 million ordinary shares, just days after the announcement.
This corresponds to an average selling price of approximately $4.95 per share, which is marginally higher than the trading price of $4.90 on the previous Friday.
It is worth noting that Pernod Ricard, a global spirits and wine company, acquired 1.27 million shares for approximately $6 million.
According to a Wall Street analyst, Jumia’s cash reserves, which were $92.8 million in the second quarter, may result in a $65 million loss in 2024.
Jumia’s liquidity is anticipated to be substantially enhanced by the $99 million raised in this offering. Nevertheless, the organization has yet to provide an official statement regarding the disposition of its shares.
Despite Jumia’s failure to meet its revenue targets for the second quarter of 2024, investor confidence in the company’s capacity to succeed in the African e-commerce market remains robust, a critical factor in the company’s ongoing expansion.
Jumia intends to allocate the funds to the enhancement of its customer acquisition initiatives, the expansion of its supplier network, and the enhancement of its distribution infrastructure.
The company will also allocate resources to the technology that underpins its vendor services and marketing division, which has been accessible to customers since 2021.
Read more on Tech Gist Africa:
MNT-Halan, an Egyptian fintech, has raised $157.5 million in funding
Cartona, an Egyptian B2B e-commerce startup, has secured a $8.1 million Series A extension