Rocket confirms Frankfurt's 750 million euros IPO

Investment firm AB Kinnevik has confirmed what all in the trade have been waiting for over the past weeks: Rocket Internet AG intends to proceed with an initial public offering (IPO) on the Frankfurt Stock Exchange in 2014. Although the exact date of floating is still to be confirmed, the parent group

to fashion e-commerce platforms Zalando, Lamoda, Dafiti and Zalora, is aiming to raise up to 750 million euros in proceeds.

“The IPO is a natural next step in Rocket's development as it establishes an even stronger foundation to support the acceleration of its international growth s

trategy," said Lorenzo Grabau, chairman of the Supervisory Board of Rocket Internet and CEO of Kinnevik.

The IPO is intended to take place later in 2014 and the offer is expected to consist solely of new shares from a capital increase, as the company explained Wednesday. The new shares will be of the same class and bearing the same rights as shares held by current Rocket shareholders.

Besides, all existing shareholders of Rocket Internet will remain invested and will not sell any shares as part of the offering, meaning that Global Founders (the investment vehicle of Oliver Samwer, the founder and CEO of Rocket, and his brothers), Kinnevik, Access Industries, Philippine Long Distance Telephone Company, United Internet and HV Holtzbrinck Ventures and some of their affiliates will remain a decisive part of the Internet giant´s shareholding.

Grabau pointed out that "Rocket Internet has shown tremendous growth over the past years and has proven that its operating platform is a unique basis to consistently create and scale market leading franchises across the five continents.”

In this regard, Rocket´s founder and CEO, Oliver Samwer, explained that “Taking our company public is the next step in our journey to build the world's leading Internet platform outside of the United States and China."

Rocket's current shareholders to remain invested for the next stage

Kinnevik also assured that all six shareholders will sign lock up commitments not to sell or otherwise dispose of their shares for at least twelve months, reaffirming their commitment with the company.

Grabau sealed its company´s commitment in this new stage by saying that "Kinnevik is very supportive of Rocket Internet's intention to list. Our partnership with Rocket, which goes back to 2009, has created substantial value for our shareholders and has contributed to the transformation of our portfolio. We look forward to continuing to work with the Rocket team as the company pursues its exciting growth strategy to build the world's leading Internet platform outside of China and the United States."

Rocket intends to use the proceeds from the IPO – expected to come in at 750 million euros gross - to finance its future growth through the launch of new businesses and providing further equity capital to its network of companies.

Meanwhile, Samwer shared his excitement about the upcoming float, saying that "We believe the Internet will play a transformational role in people's lives everywhere, particularly in emerging markets.”