Germany’s Rocket Internet makes Shaky Market Debut
The much anticipated debut of Germany’s Rocket Internet on the Frankfurt stock market happened Thursday. Shares opened at 42.50 euros, which would value Rocket at 6.7 billion euros ($8.46 billion). However, a disappointing start was seen after shares fell during initial morning trading and lost 6 percent. It managed to trade more than five million shares in first hour, but started poorly. The price was down 2.26 percent to 41.54 euros. Attempting to compete with companies like Amazon, eBay and Ali Baba, the Berlin-based tech incubator, Rocket is run by the Samwer brothers. With more than 20,000 employees in more than 100 countries, Rocket also fully or partially owns 66 companies all around the globe.
CEO and cofounder Oliver Samwer said that Rocket wants to dominate the e-commerce area globally. Their IPO will validate such a vision with public investors. “Taking our company public is the next step in our journey to build the world’s leading Internet platform outside of the United States and China,” said Oliver Samwer.
Meanwhile, Rocket’s Zalando ventures made their debut one the market on Wednesday. After gaining on first day, shares remained flat on the Thursday. Coming after China’s Alibaba raised $25 billion in New York a few days ago, Rocket and Zalando’s market debut and offerings will definitely impact the German tech scene. After Alibaba’s arrival, International markets seem to have become enthusiastic about e-commerce openings, which will surely increase IPO activity for e-commerce firms around the world as market experts are predicting another tech bubble.