Jumia Technologies, a Nigerian e-commerce store, has become the first ever Africa-focused technology company from Africa to list on the world’s largest stock exchange, the New York Stock Exchange.
Jumia is an online marketplace in Africa for electronics, and fashion among others. It has partnered with more than 50,000 local African companies and individuals.
Performance on the NY stock exchange:
The largest e-commerce operator in Africa started its first day of trading with an opening price of $14.50. The stock traded at the close of the day at $25.46 per share. The initial public offering (IPO) surged more than 75% on its first day of trading.
“We are very excited about Africa because what we saw here today was amazing. This company priced extremely well, traded up largest volumes.” Says Alex Ibrahim, Head of International Capital Markets at the NYSE. “So, that showed the interests by investors not only very large institutions but even the retails here in the U.S., the dynamics were extremely impressive.” He continues, “We are expecting to see other companies from the region in different segments of the tech space to potentially consider U.S. listing.”
The company grew in trade worth over the course of the day. It jumped from an opening price of $14.50 to $25.46 by end of day. “The interests by the U.S. investors was extremely strong so I’m assuming that investors will continue to look into Jumia because they provide the vehicle to tap into the region that is growing and providing access to U.S. investors to buy these products that actually mirrors the growth of the region,” said Ibrahim.
According to Ibrahim, Jumia specifically chose to list of the NYSE over NASDAQ because the NYSE has larger volatility, more visibility and certainty of execution.
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