Why Jumia Technologies Stock Was Sliding Today

Shares of Jumia Technologies (NYSE: JMIA), the African e-commerce company that has surged in recent weeks, were getting dinged today after it announced an at-the-market offering this morning, signaling that current shareholders are about to get diluted. Jumia said that it had entered into an agreement with Citigroup to do an at-the-market offering of nearly 8 million American depositary shares. It's not unusual for a growth stock like Jumia to make such a move, especially as the company is raising funds to expand its business across Africa and boost investments in areas like food delivery, digital payments, and e-commerce.