Jumia, Africa’s largest ecommerce firm, has raised $348.6 million through secondary shares offerings of 8,962,961 American Depositary Shares (ADS).
The shares were sold for $38.90 per ADS on average.
In the secondary share sale, the company hoped to raise about $400 million.
On March 18, the secondary offering was announced, with the company’s shares trading at around $49.
The predicted proceeds, net of commissions and projected expenses, are $341.2 million.
The net proceeds from this offering will be used for general corporate purposes, according to the company.
Jumia says its aim is to break even as soon as possible.
In the end, though raising $348 million at a time when some analysts assume Jumia’s stock is overvalued is a strategic move.
Jumia’s stock sold for $14.50 per share when it went public in 2019, valuing the company at $1.1 billion.
In comparison, the selling of 8,962,961 ADS at $38.90 earned $348.6 million in the recent secondary offering. Jumia was valued at over $3 billion at the time.
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