Recall that Jumia’s IPO went live on NYSE on the 12th of April 2019. Since then, the African based e-commerce platform has gone on to break new records with an impressive first day run as its stock was priced at $14.5. They eventually closed up at 75%. Jumia’s shares were priced at $14.5, they offered 13.5 million shares for purchase and raised $196 million.
However, MTN Group LTD, one of the e-commerce major share holder has made move to sell up to 50% of its $655 million share in Jumia. The Telco plans to sell in other to raise fund to pay off debts and also venture into new markets. MTN’s 19% stake is predicted to happen before the end of the year.
The Telco giant will have to endure a six-month lock-up period where they can’t sell their shares. MTN has declared that Jumia’s assets are not central to the services that they provide, and they have announced a 15 billion-rand ($1 billion) disposal plan.
MTN is also looking to sell off their interests in the flight-booking site, Travelstart.co.za and telecommunication masts-operator IHS Towers Ltd. According to a statement from them in March 2019, their net debt rose to 63.5 billion rand from 57 billion rand in 2018, and proceeds from the sale will be used to pay that down. MTN’s shares in Jumia have gained almost 7% since the Jumia IPO, valuing the company at 194 billion rand.
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