Africa’s largest mobile operator, MTN, could be in for a windfall as subsidiary Jumia prepares to list on on the New York Stock Exchange. MTN owns 40% in Africa’s largest e-commerce business. The Nigerian-based Jumia hopes to raise $250m when it lists in later this month. Bankers are estimating a $1.5bn valuation for Jumia, which will value MTN’s stake at $600m. “That is a very meaningful amount of money and probably not something that has been factored into the MTN valuation for some time,” says Steve Minnaar, equity analyst at Abax Investments. He says the rumoured date of listing is Wednesday April 10, but this is doubtful as the company has announced it will be on an investor road show at the time. Regarding the date, Michael Treherne, a portfolio manager with Vestact Asset Management, echoed the sentiment, saying that despite indications that the listing will happen next week, he is “not holding my breath”. “Like many other online retailers, [Jumia] remains loss-making, requiri...
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