Africa's biggest eCommerce platform has gotten the final nod to sell its shares on the New York Stock Exchange (NYSE), as the registration statement filed by the company with the Securities and Exchange Commission (SEC) has been declared effective.
Apparently, SEC issued a notice of effectiveness for Jumia Form F-1 yesterday April 10, 2019 at exactly 4:00 PM (WAT).
Do note that it was specifically stated in Jumia’s Form F-1 fillings, that:
“We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective.”
Last week, Jumia got an approval to list its shares on the New York Stock Exchange (NYSE) as JMIA. With this new declaration, Jumia can now finally list its shares on NYSE. And as clarified by a SEC official, Jumia can then decide when or whether to launch its IPO.
Jumia can raise as much as $316 million or more in capital through the sale of its American Depositary Shares (ADS) — US dollar-denominated equity shares of a foreign-based company available for purchase on an American stock exchange.
Jumia stated in one of its recent filings with SEC that the company added about 300,000 additional active customers within Q1 2019. And its gross merchandise volume (GMV) also increased by approximately 55% compared to the same period in 2018. GMV is best described as the total value of merchandise sold over a given period of time.
Also, Jumia expects that its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), which have been in negative for years, will be higher than that of Q1 2018. However, it’s expected to record improvement as a percentage of GMV.
As of now, Jumia Technologies has 8 subsidiaries in Nigeria, 2 each in Egypt, Tanzania and Ivory Coast and one each in ten other African countries the company operates. These are all listed in the company’s list of significant subsidiaries.