After closing early on its initial public offering (IPO) due to investor demand across all points of the price range, Rocket Internet AG (Rocket) decided to raise its IPO beyond the price range on October 2.
Rocket, which owns popular Southeast Asian e-commerce businesses Zalora, Lazada, and the cab hailing app Easy Taxi, announced on October 2 its IPO at €42.50 (US$53.68) per share.
Rocket recently moved its offer period that began on September 24, 2014 CEST to end on October 1, 2014 at 13:00 CEST for institutional investors and at the end of the business day for private investors. Rocket said the listing of shares and first day of trading on the Frankfurt Stock Exchange is planned for October 2, 2014, expecting settlement on October 6, 2014.
Rocket’s new partner PLDT (Philippine Long Distance Telephone Company) the Philippines’s dominant carrier, tagged the company’s IPO as a “successful pricing” as the offering was over-subscribed well in excess of ten times at the top end of the price range.
PLDT said at the issue price of €42.50 per share, and assuming the full exercise of the underwriting banks’ option in connection with the over-allotment or the “Greenshoe Option”, Rocket has a market capitalization of approximately €6.7 billion (US$8.4 billion).
Starting October 2, 2014, Rocket shares will trade on the Entry Standard of the Frankfurt Stock Exchange under the ticker symbol “RKET”
Rocket is a German-based online platform company that is also into financial technology and payments. It announced last August its plans to establish new Internet companies in fast growing markets like the SEA region.
In early August, PLDT signed a “global strategic partnership” with Rocket investing in US$420 million for a 10 percent stake, but the carrier said this was diluted to 8.6 percent in less than two weeks with the entry of United Internet AG, an Internet specialist in Europe. The latter invested US$438 million for a 10.7% stake in Rocket.
Other shareholders of Rocket include Investment AB Kinnevik 18.5%, Access Industries 8.5%, and the Global Founders Fund at 53.7%.
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