- Jumia, Konga Plan $4.7b IPOs on Intl Market
Online marketplace operators, Jumia and Konga, are planning an Initial Public Offering of their individual shares on the international market valued at $4.7 billion combined.
Jumia is set for an initial public offering in the New York Stock Exchange in 2019, which will see the business valued at $1.5 billion.
Also, Konga is planning an initial public offering in either the New York Stock Exchange or the London Stock Exchange by the last quarter of 2020, which will see the e-Commerce platform valued at $3.2 billion.
Mark Jersey, a prominent stock analyst at the New York Stock Exchange, disclosed the possibility of Konga initial public offering before the end of 2020.
According to Jersey, the offering is a much sought-after by investors, who have been following him for the past eight months, when the business experienced a huge stride under the new ownership after the exit of previous majority investors, Naspers and AB Kinnevik.
It is expected that Jumia’s listing, would help MTN, Jumia’s largest shareholder reduce its debt which has increased from $4.1 billion at the end of 2017 to $5 billion in June 2018. On the other hand, Konga’s imminent initial public offering is one that should see the business excite a horde of potential investors, going by the current standing of the company.
Speaking on the likely listing of Konga, Chris Uwaje, Africa Chair for IEEE World Internet of Things, said that the Konga Group had added huge value to the e-Commerce landscape which should see its gross over $3.5 billion.
Uwaje, further spoke on Konga’s huge infrastructure and technology backbone which is rare in Africa, adding that in valuing Konga, the strategic 360 degrees Omni-channel strategy of the business must be considered.
“Within the last seven months, I am aware that the new owners of Konga have repositioned the company strategically and upped the overall value of the business.
“In valuing Konga, you must consider its strategic 360 degrees Omni-channel strategy, their Central Bank of Nigeria-licensed mini bank – KongaPay which I am sure cannot be valued anything less than $750 million and best in Africa digital logistics division known as Kxpress with a nationwide network,” he said.