Rocket Internet, the superstar incubator, has set a price range of €35.50 to €42.50 for its Initial Public Offering, valuing the company at about 6.2 billion euros ($8 billion).
Founded in 2007 by brothers Oliver, Alexander and Marc Samwer, Rocket Internet has set up e-commerce sites and online marketplaces for everything from taxis to meal deliveries in more than 100 countries. Its companies made about $1 billion in revenues last year. In Africa, some of the e-commerce properties include Jumia, HelloFood, EasyTaxi and many more.
Rocket said the proceeds from the share offering would be used to fund the launch of new companies, finance existing firms and consolidate Rocket’s stakes in some of its more established companies.
In a turn of events, Oliver Samwer, chief executive and co-founder, signaled a change in the company’s strategy stating that Rocket Internet planned to turn itself into an operating company from its previous role as an incubator. “Rocket is not an investor. Rocket is an operating company,” he told a news conference today.
According to Samwer, “We will finance our companies significantly longer. Previously, we could only support them in an early phase as we didn’t have enough money,” forcing it to seek early exits.
Bookbuilding for the offer begins on Wednesday, and shares will start trading in Frankfurt on Oct. 9.
