As it delists, Rocket Internet’s ill-fated experiment with public markets is over – TechCrunch

It was all supposed to be so When Rocket Internet IPO’d in 2014 it was the largest tech company floatation in Europe for 7 years. A year later it had lost $46m and it’s valuation had dropped by 30%. Since then the German start-up factory behind internet companies such as Delivery Hero, Z…

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Since then the German start-up factory behind internet companies such as Delivery Hero, Zalando and Jumia has languished, in part because the reason for it’s existence – to provide growth capital for ‘rocket-fuelled’ startups – has ebbed away, as the tech market was flooded with capital in recent years.

In a statement, the company said: “The use of public capital markets as a financing source as essential [sic. ] parameter for maintaining a stock exchange listing is no longer required and adequate access to capital is secured outside the stock exchange.

Rocket’s market value has fallen from its high of 6. 7 billion euros ($8 billion) on the day of its IPO on the Frankfurt Stock Exchange to just 2. 6 billion euros and is now offering investors 18. 57 euros ($22. 23) for each of their shares, lower than Monday’s closing price of 18. 95 euros.

Jumia, the African e-commerce company, listed in April last year and when Rocket sold its stake earlier this year, it contributed tp Rocket’s net cash position of €1. 9bn at the end of April.

Outside a capital markets environment, the Company will be able to focus on a long-term development irrespective of temporary circumstances capital markets tend to put emphasis on.

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