The two major players in the African e-commerce market, Jumia and Konga, are set to list their shares on the international market.
Jumia is planning an initial public offering (IPO) in New York this year which will reportedly see the business valued at $1.5 billion.
Konga, Nigeria’s biggest Omni-channel e-commerce group, is also reportedly set for a major listing on either the London Stock Exchange or New York Stock Exchange (NYSE) by the last quarter of 2020. Konga Group is set for an initial public offering that will see the e-commerce giant valued at about $3.2 billion, further improving the potential of the eCommerce industry in Nigeria, Africa’s biggest market.
Mark Jessey, a prominent stock analyst on NYSE had hinted of the strong possibility of a Konga IPO before the end of next year. He noted that the move will be encouraged by investors, whom have followed within the last 8 months the huge strides and trajectory of the business which came under new ownership after the exit of previous majority investors, Naspers and AB Kinnevik.
Jumia’s successful listing could help MTN reduce its debt which unconfirmed reports indicate to have increased to over $5 billion in June from about $4.1 billion at the end of 2017. Konga’s imminent IPO is one that should see the business excite a horde of potential investors, going by the current standing of the company.
Chris Uwaje, Africa chair for IEEE World Internet of Things (WIoT), who commented on possible listing of Konga, said the company has added huge value to the e-commerce landscape which should see its value gross over $3.5 billion.
According to Uwaje, “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”.