Rocket Internet announces IPO

Rocket intends to raise around €750m through the flotation.The funds have been earmarked for the funding of future growth opportunities, including launching new businesses and providing further equity to its network of companies.

The Berlin-based company has applied for inclusion on the Entry Standard market, before moving to the General or Prime Standard market of the Frankfurt Stock Exchange in the next 18-24 months.

The offer will consist entirely of primary capital, meaning current shareholder stakes will not be affected. Only last month, United Internet bought a 10.4% stake in the company for €435m in cash and assets, while Holtzbrinck exchanged its entire stake in seven of Rocket's e-commerce businesses for a 2.5% stake in the incubator.

Investment AB Kinnevik has an 18.1% share and is the largest shareholder in Rocket's former start-up, fashion retailer Zalando, which last week announced its own plans to list on the Frankfurt Börse. In August last year, Rocket transferred its entire stake in Zalando to Kinnevik, which now owns 36% of the company.

The supervisory board of the Berlin-based company is chaired by Lorenzo Grabau, the CEO of Kinnevik.

Access Industries and the Philippine Long Distance Telephone Company own an 8.3% and 8.4% stake respectively, while the largest shareholder is Global Founders, which has a 52.3% shareholding. Global Founders is the investment vehicle of Oliver Samwer, founder and CEO of Rocket, and his brothers Marc and Alexander.

The brothers set up Rocket in 2007 to mimic successful US business models in emerging markets such as Latin America, South East Asia, India and Africa. It builds online businesses in the sectors of e-commerce, marketplaces and financial technology after analysing internet trends. Its online food delivery platform Foodpanda received $60m last month from Rocket and Falcon Edge Capital, resulting in a total of more than $100m raised in less than 18 months.

The new shares will be of the same class and hold the same rights as shares held by the existing stakeholders. The six backers will also sign lock-up commitments not to sell their shares for a minimum of 12 months.

Berenberg, JP Morgan and Morgan Stanley have been appointed as joint global coordinators for the impending IPO, together with Bank of America Merrill Lynch, Citigroup and UBS Investment Bank, who are acting as joint bookrunners.

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