Over a week ago, Jumia Technologies began selling nearly 9 million ADS (America Depositary Shares). The e-commerce group has completed the operation, which is the second of its kind since arriving on Wall Street. All the ADSs put on the market, ie 8,962,961, found buyers. This allowed Jumia to rake in $348.6 million.
Over the period that began its run on March 18, 2021, the company’s average price of an ADS was $ 38.90. This sale shows that Jumia has the confidence of a significant number of investors. This is despite the various hardships it has endured since its introduction and the fact that it is still not profitable.
Read also: How African Startup Founders Handled Exit From Startups They Founded
Proceeds from this “at the market” offering, net of commissions and estimated expenses, are expected to be $ 341.2 million. The operation was led by Citigroup Global Markets.
Jumia intends to use the new funds for general purposes.
An American depositary share (ADS) is a non-US equity share that is owned by a US depositary bank and available for purchase by US investors. Individual shares are known as ADSs, whereas the entire issuance of shares by a foreign corporation is known as an American Depositary Receipt (ADR).
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer
Jumia raises Jumia raises