Rocket Internet plans to raise €1.47 billion by listing shares on Frankfurt’s stock exchange next month. This means the company’s market value could reach up to €6.5 billion, making it one of Germany’s largest tech listings in the last ten years.
The shares are expected to be priced from €35.50 to €42.50 each, with the price being finalised on October 7, said the German firm. The offer period started on 24 September and its initial public offering (IPO) will be held on 9 October.
Rocket also revealed that cornerstone investors such as J.P. Morgan Securities and an investment trust operated by Baillie Gifford had pledged to buy more than €580 million worth of shares. Moreover, all stockholders, including the aforementioned investors, promised to uphold a one-year lock-up period.
The IPO’s proceeds will be used for Rocket’s expansion, unveiling new ventures, and raising stakes in start-ups in order to retain majority ownership as these firms mature.
Previously, Rocket’s business model for funding its start-ups was turning to outside investors, which means it does not have controlling stakes in most of these ventures.
Founded by brothers Oliver, Marc, and Alexander Samwer, Rocket is touted as one of the biggest start-up incubators and venture capital firms in the world that is focused on the e-commerce market. The company is known for introducing the ideas of successful Western internet firms to emerging markets.