Share E-commerce firm Jumia has filed for an Initial Public Offering on the New York Stock Exchange (NYSE), which will make it the first African...
ABUJA (Reuters) – Jumia, the African e-commerce company of German start-up investor Rocket Internet, has filed for a New York initial public offering, which could value the firm at $1.6 billion or more.Jumia, founded in 2012 offers online shopping, logistics and payment services, but is losing money. The company says its business is expanding, and the continent’s development will make it a better market, with a growing young population, more infrastructure investments, urbanisation and rapid economic growth.The New York filing did not say how many shares Jumia would sell, nor at what price. Morgan Stanley, Citigroup, Berenberg and RBC Capital Markets are leading the IPO.In December, Jumia was valued at 1.4 billion euros ($1.6 billion) with shares at 14.74 euros, according to the filing.Jumia, which now counts Nigeria as its largest market, makes money both selling its own products, and taking a cut from third-party sales. In 2018, revenues were 130.6 million euros, up from 94 million euros the previous year.However, losses also rose, from 165.4 million euros in 2017 to 170.4 million euros in 2018. By the end of December, accumulated losses were 862 million euros, the firm said.In the IPO prospectus Jumia said that the value of goods sold on its platforms is increasing at a more rapid pace than losses – from 507.1 million euros in 2017 to 828.2 million euros in 2018.Jumia’s active users, people who buy something at least once in the past year, increased to 4 million at the end of last December form 2.7 million a year earlier.Apart from Rocket Internet, which owned 21.74 percent of Jumia as of the end of December, MTN Group held 31.28 percent. Other, smaller shareholders include Millicom International, AXA Africa Holding and Goldman Sachs.($1 = 0.8857 euros)Reporting by Paul Carsten; Additional reporting by Arno Schuetze; Editing by Susan Fenton
Jumia is poised to become the first African start-up to be listed on the New York Stock Exchange.MTN-backed e-commerce company Jumia is set to become the first African start-up to list on the New York Stock Exchange (NYSE).This as the Nigeria-based start-up filed for an initial public offering (IPO) on the NYSE yesterday, as reflected in documents from the US Securities and Exchange Commission.According to reports, the firm can list on the NYSE as early as next month.Banks leading the IPO include Morgan Stanley, Citigroup, Berenberg and RBC Capital Markets.MTN, Jumia's largest shareholder, recently said it plans to generate more than $15 billion over the next three years through asset sales. Jumia Group secured over EUR300 million (R4.9 billion) of funding from MTN in 2016.The first MTN asset sale move was last week's announcement that it will dispose of its associate in Botswana, Mascom, for $300 million (R4.3 billion).In a short statement sent to ITWeb following Jumia's IPO filing, the mobile operator says: "MTN is aware Jumia has publicly filed its registration statement and is working on the IPO which is focused on raising capital for growth."As we discussed at our results on 7 March, MTN has completed a review of the markets in which we operate to ensure appropriate strategic and operational fit. We have also reviewed our e-commerce and towerco portfolios, which include Jumia, and determined that these are not strategic for us over the long-term."Massive valuationJumia was launched in Lagos in 2012 by Jeremy Hodara and Sacha Poignonnec, ex-McKinsey consultants, along with Tunde Kehinde and Raphael Kofi Afaedor.It then expanded to five other countries: Egypt, Morocco, Ivory Coast, Kenya and SA. In 2014, the company launched offices in Uganda, Tanzania, Ghana, Cameroon, Algeria and Tunisia, and it was present in 14 African countries in 2018.The company, which was given a $1 billion valuation in 2016, had four million active consumers at the end of 2018.Jumia became the first African start-up unicorn in 2016, achieving a $1 billion valuation after a $326 million funding round that included Goldman Sachs, AXA and MTN.In its filing, Jumia says its mission is to "improve the quality of everyday life in Africa by leveraging technology to deliver innovative, convenient and affordable online services to consumers, while helping businesses grow as they use our platform to reach and serve consumers".The Jumia platform consists of its marketplace, which connects sellers with consumers; logistics service, which enables the shipment and delivery of packages from sellers to consumers; and its payment service, which facilitates transactions among participants active on its platform in selected markets.The company operates in six regions in Africa, which consist of 14 countries that together accounted for 72% of Africa's GDP of EUR2 trillion, and 74% of African consumer expenditure of EUR1.4 trillion in 2018, according to the IMF and Euromonitor, respectively."Though still nascent, we believe that e-commerce in Africa is well positioned to grow. In 2018, less than 1% of retail sales for countries measured in our footprint in Africa were conducted online, compared to nearly 24% in China, according to Euromonitor," says Jumia.NYSE appetiteCommenting on the Jumia IPO, Byron Lotter, portfolio manager at Vestact Asset Management, says: "The IPO could value the company at a solid $1.6 billion. That puts it in line with Dis-Chem, Resilient and Tsogo Sun. In case you forgot, Jumia is an online retailer with over four million users, predominantly in Nigeria."According to Lotter, the NYSE has the liquidity and appetite for these types of businesses. "After many successful tech IPOs in the last 10 years, US investors are not scared to put money into a company that made a loss of R2.7 billion last year.Jumia reported a loss of EUR170.4 million in 2018."As you may have noticed, the JSE has been very unforgiving and sceptical of late. Understandably so. As the gateway to Africa, I'd say this is a missed opportunity for the JSE."Lotter points out that at the end of December, MTN owned 31.28% of Jumia, which values its stake at R7.15 billion."That is juicy. MTN have already indicated they plan on selling the stake to pay off debts. Considering MTN's already hefty exposure to Nigeria, as well as Nigeria's propensity to turn ugly on its private sector, I'd say cashing out is a good idea."
Nigerians party with so much pomp and pageantry. Barely a weekend passes by without having one event or the other to attend especially for the party freaks. Whether it is a christening, house warming or wedding, we celebrate to the fullest adorning resplendent and similar attires popularly called aso-ebi.However, those who simply attend these parties may not appreciate the time and money invested in planning and organizing them. The undeniable fact is that organizing a typical Nigerian party is very, very, very stressful.The nucleus of every party is food and drinks. Your party is incomplete without these two items. Despite the fact that you invited people to attend your wedding, you have to still offer them food. And the onus is on you to make provision for varieties: local and continental dishes. This even makes the planning cumbersome. You may have the finance to provide all these necessities for organizing a smooth and perfect Nigerian party, but you may not want to put in the time required.Yes, you may want to get the services of an event planner. But note that you will be spending more. Why not save money and time by leveraging or jumping on the eCommerce trend?eCommerce has injected and pumped convenience into so many lives and businesses. Today, only a handful of people visit brick and mortar stores for their purchases. They sit in the comfort of their offices and homes to order whatever they want. Leading this push is Jumia, Nigeria’s no 1 shopping destination. On the platform, you can order gift items for the party you are attending and interestingly, you can have them delivered to whomever you are presenting them to.So, what is stopping you from replicating the same thing for your party when you have Jumia Food and Jumia Party at your service?With Jumia Food, all the food needs of your party are fully covered and as for variety, you do not need to worry. Also, there are different restaurants on the platform you can choose from to provide your desired food services at the best price.The same thing goes for Jumia Party. In this case, there are various types or kinds of beverages (alcoholic and non-alcoholic you can order for your party. You do not need to stress yourself with ferrying the beverages to the venue. Jumia Party will deliver them at the agreed time anywhere in Lagos.The goal of eCommerce is to make things convenient and this is what Jumia is riding on to ensure that it delivers convenience to the homes of every Nigerian. Therefore, organizing a party is no longer meant to be demanding and taxing like it is for a significant number of Nigerians. You can organize your party and go to sleep because Jumia Food and Jumia Party got your back.
The Independent National Electoral Commission (INEC), has released a comprehensive list of Senators-elect, following the February 23 Presidential and National Assembly Elections.However, Governor Rochas Okorocha’s name was omitted from the list.The list was displayed on the commission’s website.
Delays 2018 financial resultsBy Rosemary OnuohaSHAREHOLDERS as well as other stakeholders of some insurance companies will have to exercise longer patience waiting for the 2018 full year financial results as many of the companies came under the burden of implementation of the International Financial Reporting Standard 9, IFRS9, in the 2018 financial year as against initial scheduled period of 2020.Although some investors are of the opinion that the delay could prevent them from taking positions on some insurance companies as and when due, they see the implementation of IFRS as a welcome development saying that insurance companies have delayed the implementation for too long.Commencement ofimplementationInformation gathered by Financial Vanguard reveals that the National Insurance Commission, NAICOM, at a meeting with insurance companies last month, mandated them to commence implementation of IFRS9 with effect from 2018 full year financial report.Speaking on the development, Mr. Patrick Ajudua, a shareholder, said that it is worrisome that the insurance sector is yet to commence implementation of IFRS, which is a universal standard, when the banking sector have commenced two years ago.Also speaking to Financial Vanguard, Director, Supervision, NAICOM, Mr. Barineka Thompson, said that the IFRS 9 is a universal standard and not a regulation of NAICOM, and as such, the regulator cannot compel insurers to commence implementation because it is what they have to do naturally.However, some insurance companies have besieged the Nigerian Stock Exchange, NSE, with notices of late submission of financial results due to the sudden implementation of the IFRS 9.For instance in a notice to the Nigerian Stock Exchange, NSE, African Alliance Insurance stated, “African Alliance Insurance Plc wishes to notify its esteemed shareholders and other stakeholders that the company has obtained the approval of the NSE for the extension of time to file its audited financial statements for the period ended March 31, 2019.“The extension of time to file the aforementioned accounts has become imperative to give the company time to comply with NAICOM’s recent guideline on the implementation of the new IFRS9 accounting standard which was initially scheduled to commence in 2020. Following a stakeholders meeting with NAICOM held in February, insurance companies have been advised to embrace implementation of the IFRS9 and make necessary adjustments in its ongoing audit exercise.”Similarly, Mutual Benefits Assurance Plc’s notice to the NSE stated, “Mutual Benefits wishes to inform its valued shareholders, investing public and key stakeholders that the company may be unable to meet the deadline of March 31, 2019, to file the audited financial statements for the year ended December 31, 2018 in line with the listing rules of the exchange. As an entity subject to a primary government regulator, NAICOM, and being an insurance organisation, we are affected by the adoption and implementation of IFRS9 which deals with financial instruments and IFRS 4 on insurance contracts.“Our primary regulator NAICOM only recently released the guidance on the implementation of the two accounting standards and held the consultative meeting with the industry on February 12, 2019. These events have affected the finalization of our audited financial statements and we envisage that the primary regulator would not have approved the financial statements by March 30, 2019. The results will be published as soon as we obtain the approval of the primary regulator.”Investing communityAlso, Royal Exchange Plc stated: “The management of Royal Exchange Plc would like to advise our esteemed shareholders, key stakeholders and the investing community that from available information, the company will not be able to submit its 2018 audited financial statements for the year ended December 31, 2018 as well as the unaudited financial statements for the period ending March 31, 2019 to the Nigerian Stock Exchange within the timeframe required by the NSE.“As a holding company with five different subsidiaries, the audit exercise for the group is yet to be concluded due to the adoption of IFRS 4. NAICOM recently issued guidelines for implementation of the standards and held a stakeholders meeting with insurance companies on February 12, 2019. The implementation of these new accounting standards will undoubtedly delay the completion of the audit process and submission of the 2018 audited financial statements and consequently the unaudited financial statements for the period ending March 31, 2019.”On its part, Veritas Capital Assurance stated, “Veritas Kapital Assurance wishes to inform its valued shareholders, investing public and key stakeholders that the company may be unable to meet the deadline of March 31, 2019, to file the audited financial statements for the year ended December 31, 2018 in line with the listings rules of the Nigerian Stock Exchange.“As an entity subject to a primary government regulator, NAICOM, and being an insurance organization, we are affected by the adoption and implementation of IFRS9 which deals with financial instruments and IFRS4 on insurance contracts.”Staco Insurance Plc stated, “Staco Insurance wishes to notify the NSE, our esteemed shareholders and other stakeholders that the company has obtained the approval of the exchange for extension of time to file its audited financial statements for the year ended December 31, 2018 on or before June 30, 2019.“The extension of time to file the 2018 audited financial statements is imperative as the company is in the process of obtaining an approval of the audited financial statements for the year ended December31, 2017 from its primary regulator, NAICOM. In addition, the implementation of IFRS 9 on financial instruments and IFRS 4 on insurance contracts would occasion a delay in the finalization of the company’s 2018 audited financial statements, thereby resulting in a delay in the submission of the 2018 audited financial statement to the Exchange”Others include Universal Insurance Company Plc which said, “The management of Universal Insurance Plc hereby notifies its shareholders, stakeholders and the investing public that the company approached the NSE and requested an extension of time to file the company’s audited financial statements for the year ended 31 December, 2018. The company being an insurance company subject to a primary regulator, NAICOM, is affected by the directive on the adoption and implementation of IFRS 9 on financial instruments and IFRS 4 on insurance contracts. The company’s auditors subsequently advised the company that the implementation of the two accounting standards would delay the completion of the audit process and would further cause a delay in the submission of the 2018 audited financial statements.”Law Union and Rock Insurance stated, “Law Union and Rock Insurance wishes to inform its esteemed shareholders and the investing public that due to issues relating to the recently introduced IFRS 9 conversion required for the preparation of the 2018 audited financial accounts, there may be a delay in the filling and publication of the audited accounts beyond the regulatory timeline as required by the Nigerian stock exchange.”Also, Guinea Insurance stated, “The board of directors and management of Guinea Insurance wishes to inform the general public that it will be unable to submit its 2018 audited financial statement within the regulatory timeline of March 31, 2019 as required by the NSE.“Guinea Insurance being an insurance company is subject to a primary regulator, NAICOM, and is affected by the adoption and implementation of IFRS9 on financial instruments and IFRS 4 on insurance contracts.”Shareholders reactionSpeaking further on the development, Ajudua said that shareholders are ready to exercise patience and give insurers ample time to commence IFRS 9 implementation because it will distinguish strong players from the weak ones.He said, “I am aware that many insurance companies have been getting ready to commence implementation of IFRS in 2020. However, the directive to commence implementation of the IFRS 9 now is for the interest of the companies. However, this will negatively affect companies that are yet to gather their acts together. I know that some companies won’t be affected by this because they have been getting ready long before now.”
By Babajide KomolafeVFD Group Plc said it would leverage on its new status as a public company to float a N5 billion bond offer.Group Managing Director/Chief Executive Officer of the company, Nonso Okpala, disclosed this yesterday while briefing the press on the transformation of the company to a public company.He said that the transformation from a private company (Limited) to public company (PLC) follows the successful raising of N2.8 billion through a public offering that also increased the number of its shareholders from 50 to more than 120.Okpala said: “We have last year, towards the end of last year we concluded our public offer which was a combination of a Right and private placement. We were expected to raise N2 billion, we ended up raising about N2.8 billion.“In the process of the success of that offer we had significantly increased our shareholding base. We went from about, we went from less than 50 shareholders to more than 120 shareholders and that simply puts you within the purview of a public company.“So what we quickly did was to go to the Security and Exchange Commission and CAC and we file our intention to become a public company. That has been successfully approved and as we are currently, we are delighted to say that we are a public company. So going forward, we have been referred to as VFD Group plc.”Explaining the importance of the new status of the group, he said: “First, it gives us the reputational alignment for us to raise N5 billion in our proposed VFD Group bond which should happen before the end of the second quarter of this year.“But on the largest scale it also aligns with our strategy to be a listed company in 2022. As you know, VFD group has strong and huge ambition which would include having a leading presence in all the sectors in the financial services industry.“Currently, we have done well in that respect but we are still seeking to have interest in insurance company and in the banking sector itself. We have finalised an application currently for the regional banking licence. We hope that that process would be completed within this year and worst case scenario within the first quarter of next year.”
Transactions opened on the nation’s Stock Exchange for the week on Monday with a growth of 0.95 per cent, following gains by some blue chips.The News Agency of Nigeria reports that the market capitalisation inched N113 billion or 0.95 per cent to close at N11.981 trillion against N11.868 trillion on Friday.Similarly, the All-Share Index which opened at 31,827.24 points rose by 302.70 points or 0.95 per cent to close at 32,129.94 points.International Breweries led the gainers’ table in the transactions, appreciating by N2 to close at N27 per share.Guaranty Trust Bank followed with a gain of N1.70 to close at N37.20, while Zenith Bank gained 55k to close at N24.50 per share.Dangote Flour added 50k to close at N10.40, while Dangote Cement Industries increased by 40k to close at N197 per share.Conversely, PZ Cussons topped the losers’ chart, dropping by N1.30 to close at N12.15 per share.UACN trailed with a loss of 25k to close at N8.25 per share, while Dangote Sugar declined by 15k to close at N14.50 per share.United Capital shed 10k to close at N3.25 per share, while Glaxosmithkline dropped by 10k to close at N11.90 per share.Diamond Bank was the most active stock, exchanging 33.03 million shares worth N82.11 million.United Bank for Africa followed with an account of 31.06 million shares valued at N239.14 million, while Zenith Bank traded 28.87 million shares worth N703.10 million.Access Bank sold 21.01 million shares valued at N124.20 million, while Transcorp exchanged 16.98 million shares valued at N21.43 million.In all, investors traded 228.48 million shares valued at N2.61 billion achieved in 3,544 deals.This was in contrast with 341.95 million shares worth N3.75 billion exchanged in 4,513 deals on Friday.
Related NewsDangote Flour led other equities in February on the Nigerian Stock Exchange (NSE) to emerge as the best performing stock, in percentage terms, with 81.66 per cent growth.Data obtained by the News Agency of Nigeria (NAN) from the exchange in Lagos indicated that the company, which opened for the month at N6 appreciated by 81.66 per cent to close at N10.90.The ABC Transport came second with 58.82 per cent to close at 54k against 34k in January, while MC Nichols rose by 54.55 per cent to close at 51k compared with opening price of 33k.Others include the Beta Glass 31.66 per cent and Presco 25 per cent, among others. Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. , told NAN that consumers goods stocks, in spite of weak result expected from the sector, dominated gainers due to market sentiments.Omordion said that Dangote Flour, in spite of mixed and weak quarterly financial released to the market, still emerged the best performing stock due to low valuation.He attributed the growth to low valuation and investors’ expectations of full year earnings result that would hit the market any moment.On the other hand, C &I Leasing was the worst performing stock in percentage terms with a loss of 26.88 per cent to close at N9.04 per share against N10.90 recorded in January.Vitafoam trailed with a loss of 20 per cent to close at N4 per share in contrast with N4.80 posted in January.Others were Cement Company of Northern Nigeria, Total, International Breweries and Academy Press.Omordion attributed C&I Leasing loss to price adjustment arising from the company’s recent share reconstruction.He said that Vitafoam slide was as a result of price adjustment for cash and script dividend.NAN also reports that investors during the period bought and sold 7.89 billion shares valued at N93.02 billion in 89,349 deals.The financial services sector remained the most active accounting for 3.67 billion shares worth N31. 95 billion exchanged in 30,532 deals.Diamond Bank Plc was the most traded in the sector, exchanging 1.01 billion shares valued at N2.43 billion in 2,066 deals, while GT Bank accounted for 604.25 million shares traded in 5,730 deals.The conglomerates followed with a turnover of 725.62 million shares worth N930.02 million in 3,072 deals.Transcorp dominated activities in the sector with 698.04 million shares valued at N1.02 billion transacted in 4,317 deals, while UACN sold 21.02 million shares worth N188.16 million in 929 deals.However, the All-Share Index during the period rose by 1,161.50 points or 3.80 per cent to close at 31,718.70 in contrast with 30,557.20 posted in January.Also, the market capitalisation which opened at N11.394 trillion inched N434 billion or 3.81 per cent to close at N11.828 trillion.(NAN)
Trading as a newly listed entity on the JSE for barely six hours on Wednesday, MultiChoice had already angered communications regulator, the Independent Communications Authority of South Africa (Icasa).After MultiChoice unbundled from parent company Naspers, Icasa said it was concerned about the company forging ahead with its JSE listing despite facing an ongoing complaint about a potential breach of its broadcasting service licence.Prior to the listing, MultiChoice was a subsidiary of Naspers and had been its pay-TV arm for the past 25 years.MultiChoice was hauled before Icasa’s Complaints and Compliance Committee on February 18 after non-profit organisation Khulisa Social Solutions complained that the company’s JSE listing would breach the Electronic Communications Act.In a statement on Wednesday afternoon, Icasa said it was “concerned” that MultiChoice went ahead with its listing, which gave it a market valuation of R45 billion, while its committee was yet to make a final decision on Khulisa’s complaint.ComplaintKhulisa said in its complaint, which Moneyweb has seen, that MultiChoice’s listing on the JSE constitutes a transfer of its individual broadcasting service licence from Naspers to the management and board of MultiChoice. In other words, the control of the licence now rests with MultiChoice.The transfer of licence, which was sparked by Naspers’s decision to unbundle MultiChoice into a standalone listed entity, occurred without either company obtaining permission from Icasa under the Electronic Communications Act, Khulisa said in its complaint.Section 13(1) of the Electronic Communications Act 36 of 2005 stipulates that a licence may not be transferred without the prior written permission of Icasa.“More significantly,” Khulisa said, “the listed vehicle [MultiChoice] will be an independent standalone company no longer accountable in any manner to Naspers. Instead of Naspers being the parent company, MultiChoice Group, the newly listed company, will be the controlling company. This is a change of control.”Naspers ‘reneged’Khulisa argues that Naspers reneged on its promise to seek approval and inform regulatory authorities about the transfer of control when it announced its decision to unbundle MultiChoice.“Yet four months later in its pre-listing statement, there is not a mention of regulatory submission or approval by MultiChoice Group.”If MultiChoice is found to have breached the act by not informing Icasa about the transfer of its licence, it could face sanctions that might include closer scrutiny of its broadcasting licence.Icasa would ask MultiChoice to motivate if the company is fit enough to control its licence. The regulator might also impose more onerous conditions on its licence that prohibit MultiChoice from entering into anticompetitive behaviour.MultiChoice spokesperson Joe Heshu told Moneyweb that the company is satisfied that it has complied with all regulatory requirements for its JSE listing. “We have engaged constructively with Icasa’s Complaints and Compliance Committee to resolve the matter,” he said.In its answering affidavit to Khulisa’s complaint, the company said the licenced entity is MultiChoice and that MultiChoice will continue to be the holder of the broadcasting licence. It further said there will “not be any transfer of the licence” caused by the unbundling of MultiChoice.MultiChoice also argued that it had not contravened its licence conditions in the past, and that Icasa’s committee had no jurisdiction over future events as the company’s listing had, at that time, not yet materialised.MultiChoice GroupRead: MultiChoice’s market cap tops R42bn on JSE debut
By Thomas EjiemereTransactions opened on the nation’s Stock Exchange for the week on Monday with a growth of 0.95 per cent, following gains by some blue chips.Election phobia: Stock market’s index drops further by 0.78%The market capitalisation inched N113 billion or 0.95 per cent to close at N11.981 trillion against N11.868 trillion on Friday.Similarly, the All-Share Index which opened at 31,827.24 points rose by 302.70 points or 0.95 per cent to close at 32,129.94 points.International Breweries led the gainers’ table in the transactions, appreciating by N2 to close at N27 per share.Guaranty Trust Bank followed with a gain of N1.70 to close at N37.20, while Zenith Bank gained 55k to close at N24.50 per share.Dangote Flour added 50k to close at N10.40, while Dangote Cement Industries increased by 40k to close at N197 per share.Conversely, PZ Cussons topped the losers’ chart, dropping by N1.30 to close at N12.15 per share.UACN trailed with a loss of 25k to close at N8.25 per share, while Dangote Sugar declined by 15k to close at N14.50 per share.United Capital shed 10k to close at N3.25 per share, while Glaxosmithkline dropped by 10k to close at N11.90 per share.Diamond Bank was the most active stock, exchanging 33.03 million shares worth N82.11 million.United Bank for Africa followed with an account of 31.06 million shares valued at N239.14 million, while Zenith Bank traded 28.87 million shares worth N703.10 million.Access Bank sold 21.01 million shares valued at N124.20 million, while Transcorp exchanged 16.98 million shares valued at N21.43 million.In all, investors traded 228.48 million shares valued at N2.61 billion achieved in 3,544 deals.This was in contrast with 341.95 million shares worth N3.75 billion exchanged in 4,513 deals on Friday. (NAN)