Rocket Internet shares fall after HelloFresh said to delay IPO

[LONDON] Rocket Internet fell as much as 8.1 per cent in Frankfurt after one of its largest units, food- delivery startup HelloFresh AG, postponed plans for an initial public offering, according to people familiar with the matter.

HelloFresh, which announced its IPO on Oct 28, decided to delay the sale because of concern about investor demand and valuation in a volatile market, the people said on Friday, asking not to be identified because the details aren't public. The company may revisit a listing early next year, they said.

Companies including Advent International Corp-backed Oberthur Technologies and music-streaming site Deezer SA postponed IPOs in the past few weeks, citing volatile markets.

HelloFresh fetched a valuation of 2.6 billion euros (S$3.99 billion) after raising 75 million euros in a funding round in September. Rocket Internet owns 56.4 per cent of the business.

Shares of Rocket were down 7.1 per cent to 22.76 euros at 10:29 am.

Companies that listed last month, including plastics maker Covestro AG and online retailer Showroomprive, had to reduce the size of their sales and price at the bottom of their ranges.

HelloFresh was set up in 2011 and delivers weekly meal kits with recipes and ingredients to customers in several countries, including the Netherlands, UK and US.

A representative for HelloFresh declined to comment. Officials for Rocket Internet didn't immediately comment when contacted by phone and e-mail on Monday.

BLOOMBERG