African online giant Jumia is heading for Wall Street – giving MTN a boost

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  • Jumia has applied to go public on the New York Stock Exchange.
  • This allows MTN to sell approximately $ 600 million ($ 8.6 billion) of Jumia shares to pay off its debt.
  • Jumia did not specify the timeline and stock price.

Jumia, Africa's largest e-commerce platform, has filed for US Securities and Exchange Commission (SEC) approval for an initial public offering on the New York Stock Exchange (NYSE).

With the public offer, MTN will give one of its largest shareholders the opportunity to sell around $ 600 million ($ 8.6 billion) in stock to settle its debts.

The debt of MTN increased at the end of last year to R 63.6 billion (previous year: R 57.1 billion).

Jumia operates a number of consumer e-commerce stores across the continent, including South African clothing retailers Zando, It has four million active African consumers with 59,000 active salespeople.

See also: Bruce Whitfield: It's time for MTN to give up in Nigeria

Last month Techcentral reported that MTN could sell Jumia in New York around the same time as the initial public offering of its Nigerian unit in Lagos. This is a step the air carrier has taken as part of a regulatory fine of $ 1 billion ($ 14 billion) in 2016.

The latter will be done in two steps, with an introductory listing in the first half of this year, followed by a sale of the majority stake, said CEO Rob Shuter recently.

The fillings seen Tuesday by Business Insider in sub-Saharan Africa confirmed that the African unicorn company is going public.

See also: MTN investors lost billions in less than an hour – and this could be the last shock

Jumia has not stated the timetable and stock price, but according to a Bloomberg report last month, the market value was $ 1.5 billion.

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