African e-commerce company Jumia completes sale of secondary shares at $99.6M
Jumia completed the at-the-market transaction offering of 20,227,736 ADSs, selling the shares at an average price of $4.92 per ADS.
Almost two weeks ago, TechCrunch reported that African e-commerce giant Jumia was planning to sell 20 million American depositary shares (ADSs) and raise more than $100 million, given its share price of around $5.70 at the time.
The e-tailer has now completed the at-the-market transaction offering of 20,227,736 ADSs. Jumia sold the shares at an average price of $4.92 per ADS, generating aggregate gross proceeds before commissions and offering expenses of $99.6 million. TechCrunch reported that Jumia would likely sell at that price.
Jumia CEO Francis Dufay said in a statement that the capital will “further strengthen our balance sheet and help us accelerate our growth trajectory as we progress along our path to profitability.”
Jumia’s cash position currently stands at $92.8 million (comprising $45.1 million in cash and cash equivalents and $47.7 million in term deposits and other financial assets) from its Q2 2024, its most recent financial report. That’s compared to the platform’s liquidity position of $120.6 million in Q4 2023 and $101.5 million in Q1 2024.
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