Germany-based Rocket Internet AG, an enterprise which invests, manages and expands internet-related businesses, revealed in an official statement that it plans to raise €750 million ($970 million) in its Initial Public Offering, planned for later this year. According to people with knowledge of the situation, the IPO could value the company at more than €5bn.
“I describe Rocket as the ‘beer and burger’ model: universal concepts that resonate with people everywhere, and products and services we know people pay for,” Oliver Samwer, chief executive, said in a conference call with journalists on Wednesday. “We are focused on markets outside the US and China because these are under-served.”
Rocket Internet said in its statement that the sale will comprise only of new shares, with plans to start trading on the Frankfurt exchange before the end of 2014.
Last month a 10.7% stake was sold by the company to United Internet AG, a German ISP, in a deal estimated at €435 million, outlining a ~€4.3bn market value of Rocket Internet.
The company, which was founded in 2007, is known for replicating the business strategies of successful e-commerce companies from developed markets, such as Birchbox Inc. and Airbnb Inc., and applying them in emerging markets. Rocket Internet has compared its own business model with the one of Jack Ma’s Alibaba Group Holding Ltd.
Mr. Oliver Samwer said that he is not concerned about competition with Chinese e-commerce company Alibaba, which is also to launch an Initial Public Offering. Analysts expect Alibaba to raise as much as $22bn in its IPO, set to be the largest tech listing ever, and reach a market value of more than $170bn.