E-commerce giant Jumia raises $99.6m in secondary shares sale

AFRICAN STOCKS AND FINANCEAugust 20, 2024 at 9:03 AM UTC

TLDR

Jumia completes at-the-market offering of 20,227,736 ADSs at an average price of $4.92, raising $99.6 million.
CEO Francis Dufay highlights the capital raised will bolster balance sheet and drive growth towards profitability.
Initial reports projected Jumia could raise over $100 million through the sale of 20 million ADSs at approximately $5.70 each.

New York-listed Jumia, the African e-commerce giant, has completed its at-the-market offering of 20,227,736 American depositary shares (ADSs).

The shares were sold at an average price of $4.92 per ADS, generating gross proceeds of $99.6 million before commissions and expenses. This follows reports from two weeks ago, which anticipated that Jumia could raise over $100 million by selling 20 million ADSs at around $5.70 each.

Jumia's CEO, Francis Dufay, stated that the capital raised will "further strengthen our balance sheet and help us accelerate our growth trajectory as we progress along our path to profitability."

Key Takeaways

The company's cash position currently stands at $92.8 million, which includes $45.1 million in cash and cash equivalents and $47.7 million in term deposits and other financial assets, as reported in its Q2 2024 financial results. This marks a decline from its liquidity position of $120.6 million in Q4 2023 and $101.5 million in Q1 2024. Despite the financial challenges, Jumia reported 2 million active quarterly customers at the end of Q2 2024, showing a 6.0% increase from Q1 2024, although it represents flat growth year-over-year compared to Q2 2023.

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