Zalando moving closer to an IPO

Rumors concerning the potential float of e-tailer Zalando have been circulating again. The Berlin-based internet

company has requested investment banks Credit Suisse, Morgan Stanley and Goldman Sachs begin preparing for an IPO this September, according to news source Frankfurter Allgemeine Zeitung.

Anonymous sources revealed that Rocket Internet, parent company of Zalando, is already in discussion with Nasdaq concerning its impending flotation. The board of the German etailer is said to prefer the stock market because that is where the most technological based companies currently trade their shares.

Zalando declined to commented on the rumors, but added that they are “constantly scanning options for the future of the company and that it also includes an IPO”. According to recent estimates, Zalando could reach as much as 5 billion euros with its entry into the stock market. A tech company has not been valued as high in Europe since the tech bubble burst.

After improving the efficiency of its logistical system, warehouses and marketing, the German e-tailer is also one step closer to making a profit. Sales rose 35 percent to 501 million euros during its first quarter. Rubin Ritter, Member of the Zalando Management Board, commented “the start to the year has been promising... so we are on track with our plans for 2014".