Rocket Internet co-founder files for US$250m tech SPAC

[LONDON] The management of German startup incubator Rocket Internet are creating a special-purpose acquisition vehicle that will look for a technology deal outside of the US.

Rocket's chief executive officer and co-founder Oliver Samwer, board member Soheil Mirpour, and Donald Stalter, who managed North American investments for private equity firm GFC Global Founders Capital GmbH, will run the blank-cheque company, which will sell shares on the New York Stock Exchange, the group said in a regulatory filing on Tuesday.

Rocket Internet Growth Opportunities Corp will look for targets in enterprise software, artificial intelligence, health and financial technology, e-commerce and other marketplaces.

Rocket is joining a boom in SPAC filings that investors are using to take advantage of soaring valuations, particularly for technology shares. These vehicles use funds raised from their initial public offerings to buy a private company, which then takes over the stock market listing.

The Rocket Internet Growth vehicle will sell 25 million units at US$10 each. The units will consist of a share in the blank-cheque company and one quarter of a warrant that can be redeemed for a share at US$11.50, the company said. Citigroup is the sole bookrunner.

At the same time, Mr Samwer is working to take Rocket Internet private after the shares declined over the past last year.

BLOOMBERG