German incubator-cum-investor in consumer internet ventures Rocket Internet AG, and its portfolio company Zalando, Europe's top fashion e-tailer, have seen their share price shaved off by a fifth since listing last week on the Frankfurt Stock Exchange.
While Rocket Internet’s share price slid from its issue price of €42.5 to €34 a share, Zalando’s price dropped to €17.47 (in mid-day trades on Tuesday) from its issue price of €21.5 a share.
Interestingly, the shares of both firms were quoting above their offer prices in unofficial trading before the listings.
Zalando made its stock market debut on October 1 while Rocket Internet listed on October 2.
Rocket Internet had chosen to go public in Frankurt in one of the largest tech IPOs in the German market.
Earlier, Chinese e-com giant Alibaba saw through a record $25 billion IPO on the New York Stock Exchange.
Rocket Internet is focused on building online businesses across three sectors: e-commerce, marketplaces and financial technology. It is active in various markets, with a focus on emerging and fast growing economies such as Latin America, Southeast Asia, India and Africa. The firm raised around $1 billion through the share issue. The proceeds from the issue will be used to finance the company’s future growth through the launch of new businesses and also to provide further equity capital to its network of companies.
The firm counts Indian fashion e-tailer Jabong besides others such as Dafiti, Lamoda, Zalora, Namshi, Lazada, Linio, Jumia, Westwing, Home24 and HelloFresh. These ventures are the largest and most mature of the portfolio, according to Rocket Internet.
The group also has in its portfolio names such as FoodPanda, FabFurnish and others which operate in India and some other markets.
Started in 2008 in Berlin, Zalando is a multinational e-commerce company that specialises in selling shoes, clothing and other fashion and lifestyle products online. Currently, Zalando is active in Austria, Switzerland, France, Belgium, the Netherlands, Italy, Spain, Poland, Sweden, Denmark, Finland, Norway and the UK, besides Germany.