You are here
Rocket Internet tumbles most since IPO on convertible-bond sale
[STOCKHOLM] Rocket Internet shares fell the most since its initial public offering after the startup investor said it would sell bonds that can be converted to stock.
The shares tumbled 16 per cent to 34.03 euros at 10.45 am in Frankfurt trading, giving the company a market value of 5.6 billion euros (S$8.41 billion).
The bonds will initially be convertible into about 10.2 million shares, or about 6.2 per cent of the current share capital, Rocket said in a statement Monday. The bonds will have a maturity of seven years with a conversion premium between 32.5 per cent and 47.5 per cent, it said.
Rocket plans to use the money to continue investing in companies as it seeks to become the world's largest Internet platform outside of the US and China.
The company is expanding in food delivery and fashion after putting money into online retailers Zalora and Jabong. Rocket raised 1.4 billion euros in an initial public offering in October, making it Germany's largest in 2014. It had about two billion euros in cash and cash equivalents at the end of the 2014 fiscal year.