THE Philippine Long Distance Telephone Co. (PLDT) told the Philippine Stock Exchange (PSE) on Wednesday that Rocket Internet AG (Rocket), where it invested almost half a billion dollars, will proceed with its initial public offering (IPO) and listing on the Frankfurt Stock Exchange on October 9.
PLDT and Rocket earlier entered into a global strategic partnership to develop innovative online payment solutions in emerging markets.
Under the terms of the partnership agreement, PLDT would invest 333 million euros or $445 million in Rocket. Of this amount, 50 percent has already been paid.
In its PSE disclosure, PLDT said that “the offer period for Rocket shares is to commence on September 24,2014 and is expected to end on October 2014. Rocket shares are to be offered within a price range of 35.50 euros to 42.50 euros.”
Rocket will offer up to 32,941,177 in newly issued shares, with an additional 4,942,176 shares being offered in connection with a potential over-allotment facility (the Greenshoe Option). Overall placement volume at the mid-point of the price range, including full exercise of the Greenshoe Option, amounting to 1.477 billion euros with a free float after all lock-ups of 24 percent.
Rocket’s market capitalization at the mid-point of the price range, including full exercise of the Greenshoe Option, will amount to 6.161 billion euros.
In a disclosure to the Frankfurt Stock Exchange Rocket said, “The new shares will be of the same class and bearing the same rights as shares held by current Rocket shareholders. Rocket plans to apply for inclusion of its shares for trading on Frankfurt Stocks Exchange via the Entry Standard. Rocket intends to move to the General or Prime Standards of the Frankfurt Stock Exchange in the next 18 to 24 months.”
All existing shareholders of Rocket Internet, including PLDT, will
remain invested and will not sell shares as part of the offering in line with lock up comments not to sell or otherwise dispose of their shares for at least 12 months.
In a statement, Oliver Samwer, founder and chief executive officer of Rocket said, “We believe Rocket has a unique opportunity to participate in the growth of Internet commerce in emerging markets.”
“Through our operating platform, we are building and scaling the Internet giants of tomorrow. We are taking proven eCommerce business models to over 75 percent of the world’s population and around 75 percent of its mobile users, who all live in countries outside the United States and China,” he added.
“The IPO is a significant milestone for our company and we are very pleased to have the early endorsement of world-class cornerstone investors,” Samwer said.
The company said that the capital raised through the IPO will help the company launch new ventures and further investment in existing companies as it continues to grow rapidly in markets outside the US and China.