Africa’s leading e-commerce platform, Jumia Technologies AG, has announced plans to raise €244 million ($268 million) through a rights issue, in a bid to bolster the company’s financial standing and support its expansion efforts across the continent.
The proposed rights issue will allow existing shareholders to purchase additional shares at a discounted price, maintaining their proportional ownership. The company’s current share capital stands at 244,925,650.00 euros, divided into 244,925,650 ordinary bearer shares with no par value. The rights issue, requiring shareholder approval, is structured under German corporate law, enabling the management board, with supervisory board consent, to increase share capital within five years.
In June, Jumia’s shareholders authorised the management board to raise share capital by up to 98,945,871.00 euros until June 2029. Following partial utilisation, Jumia can still issue an additional 58,490,399.00 euros in new shares.
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Strategic Investment Areas
The funds raised from the rights issue will be allocated to several strategic initiatives:
- Technological Infrastructure: Enhancing user experience and operational efficiency.
- Logistics Network: Ensuring faster and more reliable delivery services.
- Marketing Efforts: Attracting new customers and retaining existing ones.
- Financial Stability: Fortifying the company’s balance sheet for financial flexibility.
Existing shareholders will have the option to subscribe to new shares proportionate to their current holdings at a discounted price, presenting an attractive investment opportunity. The management and supervisory boards will oversee the rights issue’s execution to ensure transparency and regulatory compliance. Jumia has committed to regular updates to shareholders on the progress and impact of the capital increase.
