July was a really bad month for Jumia. But if it reports great numbers in two weeks, during its quarterly earning, everything will be fine. The ecommerce company lost about 36% of its value in July. It has now fallen below its IPO base number of $14.50 (see image below for the current closing number, $12.35).
Jumia Technologies had its initial public offering in April, pricing its stock at $14.50 per share. Shares reached just shy of $47 per share at the beginning of May , but coverage published by Citron Research’s Andrew Left kicked off a steep decline for the stock and a wave of short-selling. The stock has now dipped below its IPO price and is trading in the $13.50 range — valuing the company at roughly $1 billion.
Jumia baptized itself as “Africa’s first”; so, we are watching how it plays out as it will become a baseline for assessing future African tech firms that would dream to be in the big board.---