Mastercard will invest $56 million in Jumia, a pan-African e-commerce platform, ahead of the New York IPO on the New York Stock Exchange (NYSE) of the United States.
Jumia said Mastercard Europe SA has agreed to purchase €50.0 million ($56 million) of ordinary shares in a concurrent private placement at a price per share equal to the euro equivalent of the initial public offering price per ordinary share.
The e-commerce company is offering 13,500,000 ADSs (American Depositary Shares) and anticipate that the initial public offering price of the ADSs will be between $13.00 and $16.00 per ADS.
Chairperson of Jumia supervisory board, Jonathan D. Klein, has also indicated an interest in purchasing an aggregate of up to $1.0 million in ADSs at the initial public offering price.
The two companies also signed a new partnership to help Jumia grow its operations and transforming Africa’s digital payments landscape.
Co-CEO, Jumia, Sacha Poignonnec, added that, “We are delighted to strengthen our existing partnership with Mastercard and consolidate Jumia’s position as the leading e-commerce platform in Africa. This investment highlights the strategic synergies between the two companies, as we both seek to develop the payments ecosystem and drive financial inclusion across Africa”.
The New Stock Exchange (NYSE) has approved Jumia to list under its depository shares on the under the trading name “JMIA.”
Morgan Stanley, Citigroup Inc, Berenberg and RBC Capital Markets are advising Jumia on the IPO deal.