Jumia, Konga plan $4.7 bln IPOs on international market

A day after a rout, US stocks turn higher on solid earnings

The two major players in the Nigerian e-commerce space – Jumia and Konga – are considering listing their respective shares on the international market.

Jumia had earlier announced its planned $1.5 billion initial public offering (IPO) on the New York Stock Exchange this year, which would reportedly see the business valued at $1.5 billion, even as MTN Group, Jumia’s largest shareholder is looking to raise up to $600 million from the sale of its shares during the IPO.

In May 2018, Jumia was said to be planning an IPO in Frankfurt or London as its mother investment company, Rocket internet was seeking an exit, a report that was neither denied or confirmed.

Konga recently announced plan for a major listing on either the London Stock Exchange or New York Stock Exchange (NYSE) by the last quarter of 2020.

Konga it was gathered, was considering an IPO that would shore up the potential of the e-Commerce industry in Nigeria.

Mark Jessey, a prominent stock analyst on NYSE had hinted of the strong possibility of a Konga IPO before the end of next year, a move which, according to him, would be welcomed by investors.

When contacted on the likely listing of Konga, Chris Uwaje, a tech enthusiast and Africa Chair for IEEE World Internet of Things (WIoT), noted that the company has added huge value to the e-commerce landscape which should see its value gross over $3.5 billion.

“Within the last seven months, I am aware that the new owners of Konga have repositioned the company strategically and upped the overall value of the business. Konga could claim to be unarguably the most structured e-Commerce company in Africa, with huge infrastructure and technology back-bone which is rare in Africa and which is the strength of global players such as Amazon and Alibaba.

“In valuing Konga, you must consider its strategic 360 degrees Omni-channel strategy, their Central Bank of Nigeria-licensed mini bank – KongaPay which I am sure cannot be valued anything less than $750 million and best in Africa digital logistics division known as Kxpress with a nationwide network. I know Konga is likely the only company that does about 90 per cent of her long haul and last mile deliveries in the continent.

“In today’s investment climate, investors are investing strategically in quality companies that are owned by experienced and well tested local Entrepreneurs with global vision and I am sure you know Konga has all these qualities under one roof in addition to over thirty physical retail stores spread all over Nigeria and which also act as delivery, collection and payment centres, so they could ask for more than $5 billion for their sweat,” Uwaje said.

Commenting further, Uwaje stated: “We have also seen the huge investment in massive warehouses across major cities such as Abuja, Enugu, Akwa-Ibom, Rivers State, Imo, Kano, Delta, just to mention a few, in addition to more than three mega structures in Lagos. I am also aware that the company recently spent over ₦9 billion in acquiring a very huge warehouse in a high-brow area in Lagos in preparation for Artificial Intelligence and Robotics-driven warehousing.”

According to Uwaje, who doubles as the Director General, Delta Innovation Hub, Konga is an African e-Commerce Unicorn whose impressive strategies and achievements within such a short period would be hard to replicate in the Nigerian e-Commerce space.