Juliet Anammah, chief executive officer of Jumia Nigeria, says the company chose the New York Stock Exchange for its initial public offering because it needed people experienced in investing in e-commerce stocks.
Anammah explained the rationale behind the company’s decision at its corporate office in Lagos. also denied allegations of falsified figures levelled against the company by Citron.
“When you list, especially when you are growing at a stage where we are, of course, you want the money to grow but you also want people that will invest for a long time,” she said.
“Not just hedge funds or opportunistic investors that invest this month and next month sell their shares when something else that attracts them. Another person comes and does the same. It increases volatility in price and as much as possible we try to avoid that.
“So you need a good combination of people who are financial investors to a few people who want to lean out to keep your stock liquid so it’s available for someone to buy but at the same, we want people who want to invest in a long time.
“People who are not so concerned about a quarter’s growth but make decisions based on two, three years performance.
“To find those people, you need people who are well experienced in your industry, at this point in time we don’t have them in Africa.
“The industry is just seven years old, so you are likely to get financial investors that will come in and out and that can be very destructive
She explained that the company might consider an IPO in Africa in 2022 after reviewing the market.
Addressing questions about the company’s origin, Amammah said Jumia’s origin is not determined by the nationality of its owners.
“We are local to whatever country we are in. In Nigeria, we are Nigerian. In Kenya, we are Kenyan.
She said Jumia is considering a lawsuit against Citron, adding that the management is deliberating on it.
“We stand by the disclosures we made in our prospectus, which accurately describe our business and the related risks in all material respects. We are very excited about the future and our prospects.
“We will not be distracted from executing on our strategy and carrying out our mission by people who seek to create doubt to profit at our company’s expense.”