Rocket exerts downward drag on German fashion IPO

home24 SE

26/06/2019 09:55

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Liam Proud
    LONDON, June 26 (Reuters Breakingviews) - A clothing site in
which Oliver Samwer’s tech investor owns 20% is struggling to
float. Global Fashion Group was tainted by association with
Home24, another Rocket-backed group which flopped, despite their
differences. Investors’ growing aversion is a big problem for
Samwer.
    
    Full view will be published shortly.
    On Twitter https://twitter.com/liamwardproud
    
    CONTEXT NEWS
    - Global Fashion Group on June 25 extended the offer period
for its initial public offering, and said it may change the
terms. Reuters reported that the move was due to low investor
demand. 
    - The company's shares, which had been expected to start
trading on Thursday in Frankfurt, will now start trading on July
2, GFG said.
    - Shares in Rocket Internet, which owns a 20.4% stake in
GFG, closed 1.75% lower on June 25.
    - Germany’s Manager Magazin reported on June 20 that
Rocket’s chief executive is planning to de-list the German
technology investor.
    - The supervisory board of Rocket Internet has discussed the
project, Manager Magazin said, adding the most likely option is
a share buyback after which Chief Executive Oliver Samwer would
hold at least 75% of the company’s shares. The 46-year-old
currently owns 44% through two separate vehicles, according to
Refinitiv data.
    - For previous columns by the author, Reuters customers can
click on  PROUD/ 
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Global Fashion Group postpones initial public offering   
 urn:newsml:reuters.com:*:nL8N23W48Y
IPO website    https://uk.reuters.com/article/uk-global-fashion-group-ipo/global-fashion-group-postpones-initial-public-offering-idUKKCN1TQ1SB
BREAKINGVIEWS-Rocket’s lower orbit still requires turbo-boosters
    urn:newsml:reuters.com:*:nL8N23O1RM
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Neil Unmack and Bob Cervi)
 ((liam.proud@thomsonreuters.com; Reuters Messaging:
liam.ward-proud.thomsonreuters.com@reuters.net))