We still had two IPOs to go: UP Fintech and Jumia. During the collection of data it turned out that UP Fintech is… let’s say special. It seems to be a subsidiary of a company called Tiger that has been around for 25 years but was silent after 2016. Then UP Fintech’s ticker code is TIGR. Probably this is a reversed listing, but that’s not the issue. Only one quarterly report could be found (form 10Q as the registration is NASDAQ). There the total Liabilities reported are very low when compared to the total Assets. Indeed the Equity is high, but even higher than the total Assets. After some correction the Equity suddenly is negative. For me this was enough to drop this company as it seems it’s not compatible with IFRS (or US GAAP) or uses a special version I don’t know of. This means only Jumia, an African platform-company (started in Nigeria), was left in scope.
Photo by gregade on Pixabay
Although Jumia is very good in burning money, the quarterly reports look much better than UP Fintech’s. But we selected them because of the change in the price of the shares. At the end of the day of the IPO the share-price was nearly twice as high as the offer price. Within a couple of weeks it was even three times this value, but then it started to drop. At this moment (start of 2020) the share-price is below six USD. Before and after the IPO losses were reported which were even higher than the revenue. Probably the investors lost their faith after hoping for a turn for the better?
It’s funny that this African company has a registration at the NYSE, but publishes quarterly reports in EUR. For me this meant the values had to be converted to USD, but because the EUR-USD exchange rate is rather stable and the period is short, so a factor 1.1 was taken for all values. Below a screenshot of the full 3D-graph for all IPOs is shown. Underneath a more detailed screenshot showing the Jumia “buildings”.
Double-clicking a screenshot will open the 3D-graph in your browser. For manipulation of this 3D-graph: Clicking the right mouse-button and moving the mouse up and down at the same time, will zoom the graph in and out. Clicking left while moving the mouse will tilt the graph in different directions. Double clicking in the graph translates it and readjusts the centre at the same time. Just try it – If you don’t know how to get the normal position back, refresh the page in your browser.
The good news is that the equity wasn’t negative before the IPO! After the IPO the situation was much better of course, although the losses keep burning money. In the 3D-graph the red roofs are showing clearly that the losses are high. Although the end of year balance for 2018 is known, we had to estimate the revenue and loss for Q4 2018 by taking the average from the cumulative 2018 Q3 value.
Here our series on IPO ends. We didn’t comment a lot on conclusions to be drawn from the 3D-graph as we leave that to you as a reader. Follow us on Twitter (@AnRep3D) or have a look at our website. There a free demo-generator can be downloaded. It is fully functional, yet limited to one line of data (meaning that only one building will appear, representing one company in a specific year or quarter). With this generator it’s even possible to to get a free licence if you are a consumer, instead of a company – read about it on our website. For an in-depth explanation, visit our Youtube-channel. There AnRep3D is explained in a couple of short videos.