Internet incubator Rocket Internet and one of its portfolio companies, Germany-based e-commerce company Zalando, are set to reveal plans next month to go public, Reuters reported on Friday, citing several unnamed sources.
Each company will float stakes of about 15%. Zalando will seek to raise about €900m ($1.2bn) and Rocket Internet €800m ($1.05bn).
Referring to the troubles in Iraq and Ukraine, a banker involved in one of the proposed flotations, said: “At the moment, the IPO market is still very receptive, but political uncertainties remain…so everyone is striving to tap the market as soon as possible.”
Rocket Internet acts as both an incubator and a venture capital firm, building up companies based around existing e-commerce models and exporting them to emerging markets.
United Internet spent $580m last week to secure a 10.8% stake Rocket Internet, roughly a month after telecommunications company PLDT invested $446m. Other shareholders in Rocket include conglomerate Access Industries and investment firm Kinnevik.
Holtzbrink Ventures, the corporate venturing arm of Georg von Holtzbrinck Publishing Group, also acquired a 2.5% stake in Rocket Internet on Thursday, in return for transferring its stakes in seven Rocket Internet portfolio companies – Lamoda, Dafiti, Jabong, Namshi, Home24, Westwing and HelloFresh – to Rocket.
Zalando, which was formed out of Rocket in 2008, sells fashion and lifestyle products online. As of August 2013, its shareholders included Kinnevik (37%), the Rocket Internet-affiliated Global Founders Fund (18%), investment firm DST Global (9%), and corporate venturing units Holtzbrink Ventures (8%) and Tengelmann Ventures (6%).
One of the bankers told Reuters it would be unfortunate if both companies floated in parallel as they may have to compete for investment.
However, another source said this was unlikely to be a problem as Rocket will tend to attract technology or emerging market-focused funds and Zalando those seeking to invest in the e-commerce sector and Europe.