KINNEVIK: Rocket Internet Listing quickly oversubscribed but the WSJ critical
2014-09-25 05:58
(SIX) It took just 90 minutes for the German-based business incubator Rocket Internet, which Kinnevik is a major shareholder in and co-invest with, that in a "bookbuilding" get into drawing on equivalent to all the proposed IPO issue. It reports the Wall Street Journal on Wednesday night. Kinnevik confirmed on Monday evening that the Rocket had set price range for the listing to 35.50 to 42.50 euros, corresponding to an valuation at 4.3 to 5.1 billion before the rights issue. The valuation corresponded to Kinnevik Rocket holdings as of June 30 had been valued 5.3-6.7 billion higher, corresponding to 19.00 to 24.00 SEK per share higher. Six news coverage of Kinne's Capital on Thursday, where the relationship with Rocket Internet forward declared, see: http://bit.ly/1sev7su Return to Wednesday's article, notes the Wall Street Journal that the total value of the Rocket Internet's share capital has swelled to 6.2 billion in the middle of the drawing interval, ie after note issuance. This is an increase of 24 percent compared to when Holtzbrinck Ventures bought a 2.5 percent stake 26 August by 40 percent compared to August 15 when United Internet acquired a 10.7 percent share. The magazine is critical to overall Rockets listing on a range points. 1) valuation: The Wall Street Journal believes that the Rocket, with its 66 different brands and over 300 subsidiaries, is very difficult to evaluate. When the newspaper reload selling shares from the larger interest of the companies where Rocket today owns less than 50 percent will come to the Rocket terms of sales multiple is valued at about 21 times 2013 year's revenue. Furthermore pulls WSJ parallel to försäljningsmultipeln is roughly in line with Alibaba, the Chinese e-commerce giant that made the world largest stock market debut in New York last Friday. 2) lack of profitability: What Rocket Internet lacks, however, is profitability. While Alibaba booked $ 3.7 billion in net profit in 2013 will lose almost all of the Rockets portfolio companies money and is in need of capital. The later data shown according to the newspaper by the Rockets own listing prospectus. In addition, Rockets results for 2013 be doped by capital gains from the sale of subsidiary units, including the spin-off of Zalando (which is question for its own IPO on October 1, SIX notes). 3) Competition: The newspaper also says that "investors should consider how long Rocket may have the skies to themselves "so you can see the" established name " circulate in a couple of its key markets. Including -Amazon.com CEO Jeff Bezos who in July announced plans to invest up to $ 2 billion in India (where the Rocket among others is through active portfolio company Quikr SIX notes). 4) The capital requirement: Even without the need to keep competitors rod, then "The establishment of the next round of the Internet Stars be costly," write on. The newspaper notes here how the Rockets cost line "Other operating costs" more than doubled in the first half 2014 compared with the previous year, as a result of marketing and advertising costs escalated. The article concludes with a critical call to the German Business Incubator: "Rocket has proven to be good at rolling out technology startups based on the ideas of others. What we now need to show is that one can get these to achieve another dimension: profitability. " Johan Eklund, +46 31 350 64 87 mailto: johan.eklund@six-group.se www.blogg.six.seSIXNews SIX News
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