German-based Internet Startup Incubator, Rocket Internet, has announced that it will be delisting from the Frankfurt Stock Exchange after its Initial Public Offering six years ago.
According to the company in a statement, “the underlying rationale for the delisting is that, in the assessment of the Company’s Management Board and Supervisory Board, Rocket Internet is better positioned as a company not listed on a stock exchange.”
“The use of public capital markets as a financing source as essential parameter for maintaining a stock exchange listing is no longer required and adequate access to capital is secured outside the stock exchange. Outside a capital markets environment, the Company will be able to focus on a long-term development irrespective of temporary circumstances capital markets tend to put emphasis on,” it added.
Owned by the Samwer Brothers, Rocket Internet was famous years ago for birthing a lot of startups and they were seen as clone kings. They copied successful companies in the US and set up with clone companies across many countries globally except in the US.
They are responsible for companies like eCommerce African giant, Jumia, German e-commerce, Zalando; Food delivery service Delivery Hero and others such as Sabunta.com, Lamudi.com,
Over the years, the share price has declined steadily from a market value of 6.7 billion euros ($8 billion) on the day of its IPO to just 2.6 billion euros as of Tuesday.
Rocket Internet said that its investment division, Global Founders Capital, and CEO Oliver Samwer, would retain their stakes of 45.11% and 4.53% respectively.
