Four months after a landmark launch on the New York Stock Exchange, e-commerce giant, Jumia’s shares has crashed below its IPO price. After launching its IPO at $14.50 per share, the mid-point of its initial share price range, Jumia’s shares reached an all-time low of $14.02 before recovering to close at $14.57 on Monday, August 5th.

By Tuesday, it continued to fall by 1.7% to $14.31.

The price dip comes after a weak run for most of July which resulted in a downward price trend and several days of consecutive losses.

The trend suggests that the stock price is unlikely to rally with more trades below its IPO launch price imminent.

That outlook contrasts sharply with Jumia’s early-day run on the New York Stock Exchange, given a strong opening fortnight amid the novelty of its listing as the first major Africa-focused tech company on the exchange.

At one point in the period, Jumia’s shares were seen trading at three times its IPO launch price. This matched predictions from investors versed in backing e-commerce companies that Jumia would be subject to high interest.

But, as the stock price trend reflects, the positive run and investor enthusiasm has proved ephemeral.

Ominously, Jumia’s share price slide first came amid claims of fraud by Citron Research, a known short stock seller.

Citron alleged fraud, citing discrepancies in Jumia’s S1 IPO filing with the United States Securities and Exchange Commission (SEC) and an earlier confidential investor presentation.

In response during its first quarterly earnings call following the IPO, Jumia stood by its prospectus and transparency.

However, the company’s operating loss widened year-on-year with the $51 million (€45.5 million) operating loss recorded in the first quarter of 2019 meaning that, Jumia had accumulated over $1 billion in losses since inception in 2012.

But the company’s stock has not been able to shake off speculation with at least two law firms issuing press releases claiming Jumia is under investigation and trying to organize class-action lawsuits. Neither Jumia nor the SEC has disclosed any investigation in this period.

One obvious way to ensure the long-term health of its stock is for Jumia to show a sustainable path to profitability.

Even though the objective of profits is unlikely to be achieved soon as Jumia maintains expensive operations across 14 different African markets, the company is taking steps towards growing its customer base to impact revenues. Last week, it launched a partnership to set up pick-up stations at Vivo Energy’s over 2,000 fuel station outlets across African countries.

The move essentially extends Jumia’s retail network beyond online-only customers by allowing customers to place and pick-up orders through physical stations.

SOURCE: https://brandspurng.com/2019/08/07/jumia-shares-fall-below-ipo-price-on-new-york-stock-exchange/

Wow.. When you have not performed well in Nigeria stock market and you are expecting to do well in New York stock... Smh

Smh

This bubari regime Bleep many things up no be small

Directly and indirectly

Normal tins

Holyfield1:
It's a welcome development

A welcome development?

Every company's share in the world falls. That's why Huawei founder refused to list the company in any stock market. When Facebook shares crashed to an all time low because of scandals, Zuckerberg almost lost his position as chairman/ceo.

It will rise with time
.
.
.check out my signature if u wanna smell good

Jumia is not worth $14.50

Just a nice Exit Strategy for the PE Investors and if my experience in IPOs serves me right, this is just the best maturity period for the smart venture capitalist stakeholders to exit the deal structure with a chunk of ROI.

I can't wait to list my companies and relocate to Monaco, where I will leave my bones on the sands of time.

Social media having sections for online business and dropshiping has taken the market from businesses like Jumia and konga..

Before:
Alibaba - Amazon - Jumia - instgram - individuals..

Now:
Alibaba - Amazon - instagram - individuals..

Next:
Alibaba - Amazon - Individuals..

Future:
Alibaba - Individuals..

That's serious

I will buy when it falls to $1

Jumia for a fact has always been overvalued. It was well pumped at IPO. The PE investors, the owners, and the underwriter made a killing skinning Americans off their greens. They knew they couldn't fulfill such on NSE cos we don't have such liquidity, hence they took it to NASDAQ or was it NYSE?

Useless people. With the curses vendors lay on them daily.
These guys will ruin you if you're not strong at heart

Listing on the NYSE was just a dumb market boosting idea and media facelift

They will crash out completely very soon..
The retail industry in the USA is already saturated enough.
Nobody is buying shit From Africa

VRDroid:
Jumia is not worth $14.50

Just a nice Exit Strategy for the PE Investors and if my experience in IPOs serves me right, this is just the best maturity period for the smart venture capitalist stakeholders to exit the deal structure with a chunk of ROI.

I can't wait to list my companies and relocate to Monaco, where I will leave my bones on the sands of time.

On the money! You know the game

bLacKGoLd3:


On the money! You know the game

That is an understatement. I am the 'game'.

People still do stocks

Damn. Over $1 billion in losses

I thought jumia is an indegenous company what is it doing in new york stock exchange?

Can someone explain to me! we have Nigeria stock exchange, "no lagos stock exchange" now we NY stock exchange why not AMERICA (USA) stock exchange?

cenaman:
Can someone explain to me! we have Nigeria stock exchange, "no lagos stock exchange" now we NY stock exchange why not AMERICA (USA) stock exchange?

Just a name because of where it is located
Back to topic. . .
Jumia cannot compete internationally because most of the items sold on the site are imported. People in other countries can as well buy from the original source. Nigeria does not manufacture much, there is no comparative advantage.
You don’t expect to import from China to Nigeria and have people from from say UK or US buy from you on Nigeria site.
So, Jumia is only left with Nigerian consumers who do not have a lot of disposable incomes. Hence, doing business in Naira and balancing books in Dollars would be challenging in terms of profitability. Moreover, there is nowhere they would survive any competition internationally with companies like Amazon, eBay and alibaba/?aliexpress

cenaman:
Can someone explain to me! we have Nigeria stock exchange, "no lagos stock exchange" now we NY stock exchange why not AMERICA (USA) stock exchange?

Lagos used to be LSE too

Interesting

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All cuz they wanna be listed on the NYSE when it isn't sustainable. Nonsense!

Gentlewarrior1:
This bubari regime Bleep many things up no be small

Directly and indirectly

Early 2019
You say sir baba
Middle of 2019
You say this Buhari regime Bleep

Na me say sir baba till 2030

Let me not say what's on my mind

Its a matter of time

SpatialKing:
Wow.. When you have not performed well in Nigeria stock market and you expecting to do well in New York stock... Smh

every company stick price fluctuates...
Microsoft,appple ,Google, Amazon, Facebook etc lost over 300 billion dollars in past 3 days...the whole of USA ,Europe and Asia experienced large stock drop after trump's announced he will increase tax in Chinese goods