The recent rise in Jumia shares of 14.81% continued to excite its shareholders who expressed their confidence in the e-commerce company. Although the e-commerce giant’s shares rose 14.81%, speculation swirled that the rise in its shares was not unrelated to the recent announcement of the proposed acquisition of Jumia by Zinox. Group.
The results showed Jumia shares were currently trading at $5.89 on the New York Stock Exchange (NYSE) floor after climbing 14.8% from last Friday’s price.
The share price appreciation, it has been learned, came after investors increased their buying interest in the company after a series of trending media reports suggested the chairman of the Zinox Group, Leo Stan Ekeh, could seriously consider an acquisition of Jumia after he quietly increased his shares in the business.
Although there has been no formal confirmation or denial of Ekeh’s interest in Jumia, the development has helped bolster Jumia’s value.
Consequently, the market capitalization of the e-commerce company exceeded $588 million, supported by the double-digit increase in its shares.
Reacting to the surge in Jumia shares, his head of corporate communications at Jumia Nigeria, Mr. Robert Awodu, denied that the rise was the result of rumors regarding the planned acquisition of Jumia by Zinox Group.
“Jumia is a publicly traded entity on the New York Stock Exchange, which often experiences stock increases and decreases, depending on the market situation.
“The recent surge in Jumia shares has nothing to do with the rumored acquisition of Jumia by Zinox Group,” Awodu told THISDAY in a phone conversation.
Awodu had, last week, also denied the proposed acquisition of Jumia by Zinox Group. He said such information could never be true.
Experts, however, attributed the development to investors shunning tech stocks with high price and earnings multiples in favor of more fundamentally sound companies in the oil and gas and industrials sectors.
A takeover of Jumia by the Zinox Group, although still in the realm of speculation, could see the tech conglomerate become the largest e-commerce owner on the continent and would echo the moves of a similar groundbreaking acquisition it made with Konga in 2018.
Ekeh had acquired Konga from its previous owners – Naspers, headquartered in South Africa, and Swedish company, AB Kinnevik – when the company was about to pull out of the market.