Rocket Internet IPO to boost capital to $7.92B

Mick Basa

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Rocket Internet IPO to boost capital to $7.92B
The German start-up incubator starts rolling out its 32.9 million newly-listed shares for public offering on September 24 until October 4

MANILA, Philippines – Capital increase of Rocket Internet AG is estimated to reach €6.161 billion ($7.923 billion)* as the German start-up incubator commenced initial public offering stocks on Wednesday, September 24.

Some 32.9 million newly issued shares are being sold until October 4 in Germany, Luxembourg, and other jurisdictions, Rocket Internet said in a statement, while an additional 4.9 million shares are also up for sale “in connection with a potential over-allotment facility.”

The over-allotment facility is also known as greenshoe option, where shareholders are allowed to acquire more stakes from the company “to cover stock they sold to meet high investor demand.”

The price range of Rocket Internet stocks hovers between €35.50 ($43.081) and €42.50 ($54.655) per share, according to the company.

“Rocket currently intends to spend the most significant part of the proceeds from the IPO on launching new companies and investing existing concept companies,” said Oliver Samwer, Rocket Internet founder and CEO.

Shares are expected to be listed on the Frankfurt Stock Exchange on October 9.

Current shareholders of the company consist of Global Founders, the investment vehicles of Oliver Samwer and his brothers; Investment AB Kinnevik, Access Industries, United Internet, HV Holtzbrinck Ventures, and the Philippine Long Distance Company.

They are, however, barred from selling their shares in the IPO as they have signed up lock up commitments that last for 12 months.

Joint venture

Meanwhile, PLDT’s chief executive officer Napoleon Nazareno now sits as one of the 9 members of the startup incubator’s supervisory board.

PLDT recently completed paying its 50% balance of its €333-million ($428.394 million) investment in Rocket, making this venture its biggest overseas investment to date.

On August 7, PLDT chairman Manuel Pangilinan announced the company bought 10% of Rocket, but the stake was diluted to 8.6% with the entry of Europe’s Internet specialist United Internet AG.

PLDT and Rocket intend to establish a joint venture to explore online and mobile e-payment applications in the Philippines and throughout the Rocket network of companies worldwide.

As a start-up incubator, Rocket has set up several online fashion retailers in Latin America, Russia, Asia Pacific, India, and the Middle East. It was established in 2007.

In the Philippines, it is known for online commerce site Lazada and online taxi booking service, Easy Taxi. – Rappler.com

(*€1=$1.2862)

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