Jumia share price plunges after critical report
Some of the shine seems to be coming off the Nigeria-based e-commerce firm Jumia.
The New York Stock Exchange (NYSE) started selling shares in the company to great fanfare last month. On Thursday, their price plunged 18%.
This was after an investor report, by Citron Research, questioned whether the company was worth anything and alleged that investors had been misled.
“Jumia’s NYSE adventure has been turbulent from the start,” BBC’s Africa Business editor Larry Madowo says.
“It’s ‘African startup’ tag was questioned from the very beginning. And some analysts pointed out its combined losses of nearly $1bn (£770m) showed a company that would never make money.”
“Citron’s claims deserve to be taken seriously, but the company has been wrong before,” stock market commentator Jeremy Bowman writes.