MANILA, Philippines – Multimedia and telecommunications giant Philippine Long Distance Telephone Company’s (PLDT) stake in Rocket Internet will be further diluted following the German startup’s initial public offering.
From the original 10% or €333 million* in August, PLDT said its stake would be reduced to 6.4% – the 3rd time that PLDT’s stake in Rocket Internet would be reduced.
PLDT assumed that its interest in the German firm would be reduced once a greenshoe option of the IPO is exercised in full. Greenshoe is a clause that allows underwriters to buy up to an additional 15% of company shares at the offering price.
Initially, the 10% interest was slashed to 8.6% upon the entry of United Internet AG, one of Europe’s Internet specialists. PLDT’s stake was further reduced to 8.4% percent with the entry of Holtzbrinck Ventures (HV) with its 2.5% interest.
PLDT’s stake in Rocket Internet is its biggest overseas investment to date.
Other current shareholders of the company include Global Founders, the investment vehicles of Oliver Samwer and his brothers; Investment AB Kinnevik and Access Industries. However, they are barred from selling their shares in the IPO due to a 12-month lock-up commitment they have signed with Rocket Internet.
The company announced the successful pricing of the shares of Rocket at €42.50 per share and would raise €6.7 billion following the IPO on October 2. Rocket Internet intends to use the proceeds to finance a new business and provide further equity capital to its network of companies.
The offering comprises of 32.94 million newly-issued shares and an over allotment of 4.94 million shares.
Rocket Internet’s IPO was well received by investors.
“We are delighted with the news that Rocket’s IPO was warmly received by investors. This affirms our belief in Rocket’s unique platform for establishing new Internet companies and proven track record in successfully rolling out these businesses in fast-growing markets,” PLDT president and chief executive officer Napoleon Nazareno said in a statement.
Rocket Internet provides a platform for the rapid creation and scaling of consumer Internet businesses outside the US and China. It has more than 20,000 employees in its network of companies across over 100 countries, with aggregated revenues in excess of €700 million in 2013.
Southeast Asian e-Commerce businesses Zalora and Lazada, and fast growing brands Dafiti, Linio, Jumia, Namshi, Lamoda, Jabong, Westwing, Home24 and HelloFresh, in Latin America, Africa, Middle East, Russia, India and Europe are among Rocket Internet’s prominent brands. – Rappler.com
($1 = €1.26)