Home24, the Germany-based online home products retailer backed by e-commerce holding group Rocket Internet, raised €150m ($174m) in an initial public offering in its home country on Friday.
The company priced just over 6.5 million shares at €23 each, near the top of the offering’s €19.50 to €24.50 range, giving it a market capitalisation of more than $690m.
Home24 runs an online platform that sells furniture, lighting products or bedding to customers in Germany, France, Italy, the Netherlands, Austria, Switzerland, Belgium and Brazil on behalf of more than 500 producers.
Rocket Internet led a $19.8m round for the company in 2014 and provided a further $32.7m in 2015 alongside a $98.2m investment by Baillie Gifford. Home24 secured $22.7m in a round featuring both the following year.
Rocket Internet bought €22m of shares in the offering but its stake will nevertheless be cut from 41.2% to 30.1%. Other notable shareholders include Kinnevik (a 12.3% stake post-IPO), Scottish Mortgage Investment Trust (4.8%) and Vanguard World Fund (4.1%).
Joint bookrunners Berenberg, Citigroup and Goldman Sachs International have the option to buy up to €22.5m more shares, increasing the size of the offering to almost €173m. Home24’s shares opened at €28.50 on Friday and are €29.50 at the time of publication.
Marc Appelhoff, co-chief executive of Home24, said: “The high level of investor interest in Home24 and this offering has been overwhelming.
“We are pleased that Rocket Internet intends to remain a long-term shareholder in Home24 and wants to reinvest in connection with the offering to remain above the 30% threshold.
“With our unique business model, we are already well positioned to offer our customers the best value and an inspiring shopping experience. We are excited to continue our growth story as a listed company with the necessary capital to benefit from the large, untapped market opportunities in the online home and living industry.”