FRANKFURT (Reuters) — Zalando, Europe’s biggest specialist online fashion retailer, is on the brink of announcing plans to list on the Frankfurt stock exchange, several sources with knowledge of the matter said.
Both Zalando and German venture capital firm Rocket Internet want to announce plans for initial public offerings (IPO) in the first half of September, meaning that the two biggest Internet listings in Germany for more than a decade could take place concurrently, the banking sources told Reuters.
“At the moment, the IPO market is still very receptive, but political uncertainties remain,” said a banker involved in one of the deals, referring to the conflicts in Ukraine and Iraq. “So everyone is striving to tap the market as soon as possible.”
Zalando and Rocket Internet are likely to list stakes of around 15 percent each by selling new shares, separate sources have previously said.
Larger offers would risk diluting existing shareholders too much, something they want to avoid, bankers said. One banker estimated Zalando was seeking to raise around 900 million euros ($1.2 billion) and Rocket Internet about 800 million euros.
The companies declined to comment.
Buoyant capital markets have encouraged a flurry of e-commerce flotations this year, with Chinese juggernaut Alibaba set to list soon, even though a recent sell-off in high-flying tech stocks has dampened investor appetite.
Zalando, whose rivals include Britain’s Asos.com, started out selling shoes in Germany in 2008 and has expanded to 1,500 different shoe and fashion brands in 15 European markets.
The firm, which is seeking to expand further in Europe, posted sales of 520 million to 560 million euros in the second quarter, when it achieved its first-ever profit.