Through this offering, Rocket Internet plans to raise around €750 million (around $969 million) in gross proceeds. It also noted that this offer will consist solely of new shares and none of the existing shareholders will sell any shares as part of this offering for at least 12 months.
Rocket Internet shareholders currently include Global Founders (the investment vehicle of Oliver Samwer, the founder and CEO of Rocket, and his brothers), Investment AB Kinnevik, Access Industries, Philippine Long Distance Telephone Company, United Internet and HV Holtzbrinck Ventures and some of their affiliates.
The company is yet to disclose the starting price or how many shares will be offered through this IPO, although a source-based Reuters report suggests that Rocket Internet is looking to float a stake of just below 15% in the company.
Rocket Internet mentions that it plans to initially apply for trading on Frankfurt Stock Exchange’s Entry Standard segment and then move to the General or Prime Standard segment in the next 18-24 months. Berenberg, J.P. Morgan and Morgan Stanley will act as Joint Global Coordinators of the Offer. It will also act as joint bookrunners with BofA Merrill Lynch, Citigroup and UBS Investment Bank.
Use of Proceeds: The company plans to use the IPO proceeds to launch new businesses and provide further investment to its existing network of companies. Since its launch in 2007, Rocket Internet claims to have expanded to over 100 countries with more than 20,000 people working across its network of companies.
This announcement comes just a week after Rocket Internet and Kinnevik group merged its Indian fashion e-commerce brand Jabong with four other emerging markets focused fashion e-commerce brands into a single group called Global Fashion Group (GFG).
According to the statement, as of 30 June 2014, GFG had 4.6 million active customers and over 7,000 employees. For the first six months of 2014, GFG websites had 353 million unique visitors, received 8.4 million orders and generated €436m of Gross Merchandise Volume, according to the investors. In 2013, GFG’s IFRS revenues amounted to €406 million. The companies have around €350 million cash as of 30 Jun 2014. More on GFG funding and shareholding here.
Rocket Internet owns 21.4% stake in Jabong: In the IPO factsheet (pdf), Rocket Internet has also disclosed that it currently owns 21.4% stake in Jabong. Also see charts on how Jabong performed in Q1 2014 here.
Rocket Internet in India
Rocket Internet’s modus operandi is to replicate successful (or potentially successful) businesses models and aggressively scale them. True to its nature, Rocket Internet has launched clones of various successful businesses in India. These include:
– FabFurnish: Online furniture portal. Launched in early 2012.
– OfficeYes: Online office supplies portal. Launched in May 2012.
– Wimdu: Apartment and holiday renting portal.
– Heavenandhome.com: online home decor portal. Was later merged into FabFurnish in late 2012.
– Bamarang: Fab.com clone which was shut in June 2012.
– 21Diamonds: Online jewelry store that was shut in mid- 2013.
Updates: Added Rocket Internet shareholding chart