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Zalando announces plans for IPO in 2014

By FashionUnited

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Zalando SE, Europe’s largest online shoe and fashion retailer, has officially announced its upcoming plans for an initial public

offering (IPO) on the Frankfurt Stock Exchange.

The German e-tailer plans to sell as much as 11 percent of its shares in an IPO, which is set to take place in the second half of 2014, depending on the financial environment. The plan is to issue new shares from a capital increase, said the company in a statement sent out this morning.

“Achieving profitability in the first half of 2014 is an important milestone, which once again underlines the attractiveness of our business model,” said Rubin Ritter, Member of the Board of Zalando. “The IPO is the next logical step in the development of Zalando, since it allows ourselves - over the inclusion of equity addition - the flexibility to pursue our long-term growth ambitions.”

Zalando's existing shareholders will retain their shares and will not participate in the offering, which includes its five largest investors; Investment AB Kinnevik (36 percent), Global Founders (17 percent), Anders Holch Povlsen (10 percent) and Holtzbrinck ventures (8 percent).

Morgan Stanley, Goldman Sachs International and Credit Suisse will be acting as joint global coordinators and Joint Bookrunners. German Bank and JP Morgan are acting as joint bookrunners to manage the IPO.

The impending offering values the company between 4 billion euros and 5 billion euros, according to sources and comes barely a week after Zalando reported operating profit for the first time in its history, with sales rising 25 percent to 546 million euros.

Goldman Sachs International and Credit Suisse
IPO
Morgan Stanley
Zalando