Germany-based, corporate-backed incubator and venture firm Rocket Internet went public in Frankfurt today, floating at the top of its range and raising an initial €1.4bn ($1.8bn).
Rocket Internet issued just over 32.9 million shares in the initial public offering priced at €42.50 each, with none of the existing shareholders selling. The shares represent 21% of the firm’s shares, valuing Rocket at about €6.7bn ($8.5bn).
Global Founders Fund, the venture fund run by Rocket Internet founders the Samwer Brothers, remains the firm’s largest shareholder, retaining a 41% stake, while investment firm Kinnevik owns a 14.2% share through its Emesco subsidiary.
Internet services provider United Internet holds an 8.2% stake post-IPO, while telecommunications firm Philippine Long Distance Telephone Company owns 6.6%, conglomerate Access Industries 6.5% and Holtzbrinck Ventures, the corporate venturing subsidiary of publishing company Georg von Holtzbrinck, 2%.
Despite the offer being more than 10 times oversubscribed, Rocket Internet’s shares fell to €36.66 shortly after they debuted at the offer price, before rallying back to €41.69, though at time of publication they had fallen back down to €37.00.
Underwriters Berenberg, J.P. Morgan, Morgan Stanley, BofA Merrill Lynch, Citigroup and UBS Investment Bank could exercise the Greenshoe Option and buy another 4.9 million shares, which would increase the final proceeds for the IPO to just over €1.6bn.