Jumia’s share price has been on a downward trend in the last one month. The company which listed on the New York Stock Exchange in April 2019 recorded its lowest price of $13.81 on Tuesday 6th August. The stock initially traded at $14.5 at the time of listing. It reached its peak in May when it sold for $46.99 per share.
The online retail store has suffered from bad press with reports of fraud linked to the company circulating in the media. Two law firms issued statements claiming that Jumia is under investigations, a factor that contributed to the share price decline.
On May 14th a class action lawsuit was filed against Jumia on behalf of investors. The lawsuit was based on Citron research, which alleged that Jumia had failed to state in its Form F-1 filing that 41% of its orders were not honoured. Following the law suit the share price fell to 19.06 on 17th May.
Jumia is the first startup from Africa to list on a major global exchange with the IPO raising more than $200 million, achieving a valuation of $1 Billion. The company’s shares began trading at the New York Stock Exchange on April 12th opening at $14.50.
According to the financial results for the quarter ended March 31, 2019, the company reported a 12 % growth in revenue to 31.8 million euros
In a recent interview with Kenyan Wallstreet, Jumia Kenya Managing Director Sam Chappatte said Kenya is one of the three countries whereby they will be piloting its third-party payment solution Jumia Pay