Rocket Internet Group declined to confirm news making the rounds of an impending stock listing of online shopping platform, Jumia, which would mark an exit from a company it helped build in 2012.
When contacted by BusinessDay to verify the information, Germany-based Rocket Internet’s communications manager, Lilian Khuen-Lutzow, referred our reporter to one Bertille Guitton, head of communication at Jumia.
Guitton is yet to respond to a March 25 email seeking clarity on the alleged exit from Jumia.
Reuters reported last week that two people familiar with the matter said Rocket Internet was exploring a stock market listing of Jumia, in line with its strategy of selling or listing established internet firms.
A listing of shares, in a volume of under 200 million euros ($245.7 million), could take place in late 2018 or in 2019, either in Frankfurt or in London, one of the people is reported to have said.
Berenberg, which has a track record of working with Rocket on capital market transactions, is likely to manage the transaction, the people said.
If Rocket Internet does exit Jumia, it will be coming on the heels of last year’s floating of online food groups Delivery Hero and HelloFresh.
Finishing touches are reportedly being made to a flotation of its online furniture retailer Home24.
Rocket Internet Chief Executive Oliver Samwer said earlier this year that the company needs to hold on to its mountain of cash so it can compete with rivals from the United States and China and pounce when investment opportunities arise.
Jumia has ecommerce operations in 14 countries throughout Africa, a continent with 1.2 billion consumers.
It also features services such as an online hotel booking and a food delivery platform.
BusinessDay could not immediately provide data on Jumia’s valuation at the time of filing this report.
Jumia said in January that it had 1 billion visits on its pages across Africa in 2017. It has 50,000 merchants in its ecosystem, where 5 million products, hotels, restaurants and other services are listed.
According to a presentation from Rocket Internet, Jumia saw its adjusted loss before interest, tax, depreciation and amortization widen to 80.7 million euros in the first nine months of 2017. Revenues edged up to 57.3 million euros.
Rocket Internet incubates and invests in technology companies with proven business models.
The company’s shares, which have returned some 53.6 percent in the last one year, fell 3.13 percent on Tuesday, April 3, according to Bloomberg data. That compares to a sectorial average of +0.30 percent and an industry average of +0.10 percent.
It has a market capitalisation of 3.967 billion euros.
LOLADE AKINMURELE
