Following Jumia: Is The NYSE’s First African Listing A Worthy Trade?

The listing of Jumia, an African based e-commerce giant on the New York Stock Exchange caused ripples among traders around the world. On one hand, Jumia, a company often dubbed “the Amazon of Africa’ is a relatively young company. On the other, the company has been a darling of investors who are looking for long term equities, though it’s volatile and high risk.

How Has Jumia Performed On The NYSE Floor?

Jumia’s performance straight from the first trading bell has been commendable.

The opening prices per share were $13 and $16. Technically, Jumia had 17.6% of the company worth on trade on the first bell. The IPO raised a surprising $126 million on its first day of trading.

Now well into established trading, but Jumia shares have seen ups and downs, including substantial multi-year drawdowns since its IPO, and falling from $65 at its all-time high to as low as $2.

Mastercard purchased $50 million of Jumia’s original trading shares. This single trade created a frenzy around the company which saw its stocks rise by up to 70% at one point in the trading. Before the close of trading on the same day, Jumia stock prices were up a staggering 74%.

Shortly after, Jumia stocks were selling at 30% up from the initial trade value. This means that the company shares stabilised, though they have seen huge swings.

Jumia Prospects

Investors looking for long-term equities have been upbeat on some of its performance, both in the short and long runs. This mostly has been pegged on the fact that Jumia comes to the floor backed by already listed companies like Goldman Sachs, MTN and AXA.

Jumia operates in many African countries. It is the dominant e-commerce platform in many of these countries, with the exception of a few. While it is considered ‘ The first African startup’ to launch on the NYSE market, it is partly German-owned.

Given that this company has already created a buzz in the stock market, investing in Jumia might be profitable, especially while large investors are still keen. That said, its rocky road since has shown that its share prices can swing in both directions, requiring careful risk management.