Global Fashion Group (GFG), the Germany-based e-commerce holding vehicle formed by e-commerce group Rocket Internet, is planning to float at a valuation of €1.8bn to €2.5bn ($2bn to $2.8bn), Manager Magazin reported yesterday.
GFG operates a network of fashion-focused e-commerce platforms spanning 24 countries across Latin America (Dafiti), the Middle East (Namshi), Eastern Europe (Lamoda), Southeast Asia (Zalora) and The Iconic (Australia).
Morgan Stanley and Goldman Sachs are among the banks that have been appointed as underwriters for the initial public offering, which could theoretically take place as soon as March 2019.
The group has raised a total of about $565m, most recently securing $363m from Rocket Internet, its Rocket Internet Capital Partners fund and investment firm Kinnevik in July 2016 at a $1.1bn valuation, shortly before it divested a sixth property, India-based Jabong for $70m.
Retailer Tengelmann’s corporate venturing unit, Tengelmann Ventures, joined investment firm Verlinvest to provide $34.6m for GFG in April 2015, before Rocket Internet and Kinnevik added $167m three months later.
Conglomerate Access Industries, private equity firm Summit Partners and Ontario Teachers’ Pension Plan are also shareholders in GFG. Kinnevik owns 35% according to Reuters, while Rocket Internet held 20.4% after the 2016 round closed.
News of the potential IPO came shortly after GFG announced its financial results for Q3 2018, disclosing €799m in revenue for the first nine months of 2018 and a €60m loss before interest, taxation, depreciation and amortisation.
