AFRICA E-COMMERCE COMPANY JUMIA SHARES DROPPED 4% DAY AFTER IPO LOOKUP EXPIRED
Jumia shares dropped 4% on the day of its April IPO lo
Following the IPO reports, it was reported that the lockup provision prevented major shareholders, precisely those that purchased equity pre-public listing from selling their shares for a specified number of days. Though at the moment, sales by insiders, or sites that tracked SEC Form 4 trades for Jumia were not showing anything at the point of these reports.
The startup company’s stock began on Thursday at $7.54 and saw its lowest fall of $6.98 by 2 pm, which closed at 35 cents down from opening, at $7.19. It was also reported, Jumia’s trading volume on that same day moved up 19 percent over its daily average since the company went public.
Should the rough and tumble weeks persist! Large investors could drop the company. This came after rumors – big investors could practically drop the company after several rough and tumble weeks of Jumia post IPO. However, it seems there wasn’t an immediate big stock to sell by Jumia’s early, prior to large shareholders post lockup expiration.
Before Jumia shares dropped 4 percent (4%), it has also been figured out ever since the company went public, it has been going up and down. While on the other hand, it’s understood the company is the first tech startup that established its operation in Africa and as such to list in major exchange.
According to reports from Jumia, based on that which was delivered in August indicate some downside beyond losses, however, the second-quarter revenue growth of 58 percent and increased customer moved from 3.2 million to 4.8 million within the same period last year.
But in May, the company’s stock tumbled based on assault from a short-seller. This came based on an accusation of the company’s fraudulent act was filed in its SEC filings.
Though the company had previously opened up about a sales-related fraud (it did a
“The transactions in question generated approximately 1% of our GMV in each of 2018 and the first quarter of 2019 and had virtually no impact on our 2018 or 2019 financial statements”.
These filings have added up as an influence on Jumia share-price dropping about 50 percent from its opening price of $14.50. However, it’s therefore advisable for a tech company to revive its share
To address this (Jumia shares dropped), the company believes the gap could be closed by expanding and generating more revenue through its JumiaPay product.
- Jumia shares dropped, how could further loss be curbed?
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