Pan-African E-commerce Company, Jumia shares have been on a monthly downtrend and currently trading below its IPO price.
This comes even after its losses widened and revenue rising below the expected. Jumia reported its first financials as a public company posting a net loss for the first quarter to March 31 at US$51.0 million.
The company which was listed on the New York Stock Exchange four months ago amid lots of pomp is trading at an all-time low of US$13.40 (At the time of publishing).
Jumia’s shares began trading at US$14.50 and one point, it traded up more than three times its IPO launch price at U$49.77.
But the shares tumbled more when Citron Research’s Andrew Left released a report describing the company as a “fraud” with worthless stock.
The report cited various discrepancies between Jumia’s confidential investor presentation from October 2018 that was being used to market to investors late last year and the presentation they did to the Securities Exchange Commission before the IPO. The report also highlighted high levels of systemic fraud at the corporate level.
This was advanced more when a US-based law firm indicated that it is carrying out the investigations on behalf of the company’s investors in response to the Citron Research.