Shares of pan-African marketplace and e-commerce site Jumia have appreciated phenomenally on the NYSE after a multiple class-action lawsuit forced it to crash last year.
The Rocket Internet founded company IPOed on the New York stock exchange in April 2019 at $14.50 which plummeted to $3.95 a month later after a scandalous revelation emerged its staff had been involved in fraudulent activity to the tune of $17.5 million U.S.
Today, the company’s shares opened on the New York bourse at $19.70, restoring the company to its billion dollar plus valuation.
There has been no explanation for the share price rebound but recently Jumia, operating in 11 African countries, has attracted significant optimism among observers and investors with its pivot and Covid lockdown operations.
The lockdowns have also seen the online site witness 30% uptake in transactions. As Jumia’s Q2 2020 result nears, investors are optimistic of positive results and have been bullish on the company’s stock.
Jumia is currently owned by Africa Internet Holdings with emerging markets telecoms giant MTN, French insurer AXA and JP Morgan being the major shareholders.