New York-listed African e-commerce company Jumia is planning to sell 20 million American depositary shares over the next couple of weeks, according to TechCrunch.
With its share price at around $5.70 when the stock market opened on Tuesday, the e-commerce company could potentially raise around $100 million through this new share offering.
But the final amount will depend on the share price, which has since declined to $4.89 as of time of writing.
This drop from around $11 on Monday, following a 200% rally over the last three months, may be attributed to shareholders reacting unfavorably to the news of dilution, the impact of global carry trades, or both.
Key Takeaways
Shares of Jumia tumbled on Tuesday after the company reported another loss, lower revenue, and flat customer growth for the second quarter.
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The stock fell 48% to $5.47, although shares are still up 55% since the beginning of the year.
Jumia posted an operating loss of $20.2 million, compared to a loss of $22.1 million in the same quarter last year, buoyed by cost reductions.
The company reported an adjusted loss of $16.3 million, compared to an adjusted loss of $18.2 million the previous year.
Revenue fell 17% to $36.5 million, primarily due to foreign exchange devaluations, partially offset by higher commissions.
Gross merchandise value (GMV) fell 5% from last year to $170.1 million, dragged down by currency devaluations. Total payment volume declined 7.1% to $45.9 million.
The number of active customers remained flat year-over-year, while orders increased 6.9% to 4.8 million
