Rocket Internet valued at almost €6.2bn

Rocket could net more than €1.4bn if shares trade at the mid-point of the price range with the greenshoe option exercised.

The Berlin-based company initially stated it aimed to raise around €750m through a flotation. Proceeds have been earmarked for the launch of new companies as well as to finance existing portfolio companies beyond the seed round, with a view to maintaining majority ownership positions in its start-ups.

The listing, due for 9 October on the Entry Standard market of the Frankfurt Börse, will see Rocket list 24% of its shares, amounting to almost 33 million newly issued shares. Almost 5 million shares are available in an overallotment option.

All existing shareholders, including Investment AB Kinnevik, with a 37.5% share, and Holtzbrinck Ventures, which owns a 2.5% stake, will keep their existing holdings and have committed to a 12-month lock-up period.

Bookbuilding is expected to begin on 24 September and last until 7 October. According to reports, co-founder Oliver Samwer said the offering was already fully subscribed an hour after opening.

Cornerstone investors, which have also agreed to the 12-month lock-up, committed to purchase shares worth €582.5m at the offer price. Of the total, €350m has been committed by Baillie Gifford & Co, led by its Scottish Mortgage Investment Trust, while JP Morgan Securities has put its name down for €100m.

Founded in 2007 by the Samwer brothers, Rocket has established start-up companies that mimic successful US business models in more than 100 countries. Its 66 consumer brands employ 20,000 people in the online marketplace. Rocket stated it has delivered investors a 25x money multiple on their original commitments since inception; it claims to have returned €4.2bn on investments of €169m.

The company has also announced a new supervisory board, including chairman Lorenzo Grabau, CEO of Investment AB Kinnevik. Former CEO of private equity house 3i, Philip Yea, also takes a seat on the board.

Former Rocket Internet start-up Zalando announced a share price range of €18-22.50 last week for a 1 October listing on the Frankfurt Stock Exchange. The float could reap in excess of €630m if priced at €22.50 per share and the greenshoe option is exercised. The Samwer brothers' Global Founders fund, together with Kinnevik, will hold 11.1% of the fashion retailer once all new shares are placed.

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

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