This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Zalanda Shops Stake in Frankfurt IPO

BERLIN ( The Deal) -- Zalando on Wednesday announced an initial public offering that will give investors a sliver of the Berlin fashion e-commerce group and an indirect stab at Zalando's parent, Web incubator Rocket Internet.

The company said it hoped to sell a 10% to 11% stake in new shares in an IPO in Frankfurt by year-end. Zalando shareholder AB Kinnevik, of Denmark, values the German group at 3.9 billion euros ($5.1 billion).

The online retailer has become famous in Europe for ads featuring customers screaming with glee at the arrival of their products.

Investors have been doing the equivalent at the prospect of gaining a piece of one of Berlin's fastest-growing startups and indirect access to Rocket -- investors interested in Rocket have historically pushed up shares of Kinnevik, which owns 36% of Zalando and 18.1% of Rocket, which is also Berlin-based.

"Becoming profitable in the first half of 2014 is a key milestone and once again highlights the attractiveness of our business model. Selling shares is the next logical step in Zalando's evolution," said Zalando management board member Rubin Ritter in a statement.

Rocket itself is also rumored to be preparing an IPO for this year.

In the first six months of 2014, Zalando sales jumped 29.5% to 1.05 billion euros, resulting in Ebit of 12 million euros following a loss of 72 million euros in the first half of 2013. It had 13.7 million "active" customers at the end of the first half, up from 11.6 million a year earlier.

The company sells men's, women's and children's fashions online in most European countries, taking a similar approach to U.S. rival Rocket's founders, three brothers from the Samwer family, have been criticized for borrowing business plans but they retort by saying successful businesses are more than just ideas.

Zalando is also 17%-held by the Samwers' Global Founders Capital investment vehicle with Danish billionaire Anders Holch Povlse, Russian financial investor DST Global and German publisher Verlagsgruppe Georg von Holtzbrinck GmbH all having 10%, 8% and 8% Zalando stakes, respectively.

Morgan Stanley, Goldman Sachs Group Inc. and Credit Suisse Group are acting as joint global coordinators and joint bookrunners. Deutsche Bank AG and JPMorgan Chase & Co. are joint bookrunners. Jefferies & Co. and Stifel Nicolaus Europe are co-lead managers.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.01 0.00%
FB $99.75 0.00%
GOOG $682.74 0.00%
TSLA $147.99 0.00%
YHOO $27.05 0.00%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs