Jumia Technologies AG has today announced that they have completed a new funding round to finance its operations.
The company said that they have offered 7,969,984 ADS (American Depositary Share) that were sold at an average price of $30.51 per ADS which generated $243.2 million (Kshs 27.020 billion). They said that proceeds net of commissions and expenses are expected to be $231.4 million (Kshs 25.7 billion).
The company revealed that on November 30, they filed a prospectus supplements with the Securities and Exchange Commission for the sale of the ADS through at the market offering with Citigroup Global Markets who are Jumia’s agent.
Jumia says they intend to use the net proceeds from this offering for “general corporate purposes” without specifying what exactly they will do with the money.
Jumia started 2019 by selling its shares on the New York Stock Exchange and was initially valued at over $1 billion. A damning report by a research firm led to its stock price hitting rock bottom which was not good for the company.
The African ecommerce giant has been restructuring its business for a while now. A year ago, they started laying off employees in various markets as well as exiting some in a huge move to save costs. This came after they had launched their annual subscription plan that they named Jumia Pay. The company also partnered with Airtel recently to have Airtel Money Payments Hit the Road in Kenya with Jumia (techweez.com)