Stu­dy: Rocket Inter­net — IPOs at the expen­se of inves­tors

The busi­ness model of Rocket Inter­net is to found inter­net-based start-ups or to par­ti­ci­pa­te in such ven­tures, to sup­port them in many ways and to take them public after a few years. Rocket Inter­net has ear­ned a lot of money from this in the past years and inves­tors have lost a lot. Three issuers of the last three years brought the inves­tors a loss of assets of more than 1.4 bil­li­on €. The share­hol­ders of Rocket Inter­net are not doing any bet­ter — the share pri­ce has fal­len by about 43% com­pared to the issue pri­ce. The pro­s­pects for Rocket Inter­net are poor: the qua­li­ty of the cur­rent port­fo­lio means that no fur­ther IPOs can be expec­ted, at least in Ger­ma­ny, in the medi­um term. Per­haps the real reason for the plan games to with­draw from the stock mar­ket.

  • Qua­li­ty of issuers from Rocket Inter­ne­t’s port­fo­lio is ste­adi­ly decli­ning
  • Issuers usual­ly not rea­dy for an the stock exch­an­ge
  • Beren­berg bank leads in all loss-making IPOs
  • Three issuers des­troy­ed inves­tors’ assets of more than €1.4 bil­li­on in terms of mar­ket capi­ta­li­sa­ti­on

Blätt­chen & Part­ner has sub­jec­ted the five issuers from Rocket Inter­ne­t’s port­fo­lio to a cri­ti­cal ana­ly­sis. No issuer had a posi­ti­ve result at the time of the IPO, and four issuers have not done so to date. This also appli­es to the cur­rent IPO of the Glo­bal Fashion Group – fur­ther pri­ce los­ses for inves­tors are to be expec­ted. On the side of the lead banks, all loss-making IPOs are asso­cia­ted with the name Beren­berg.

The aut­hors of the stu­dy, Dr. Kon­rad Bösl and Kon­stan­tin Dudeck, came to the con­clu­si­on that the issuers were not rea­dy for the stock mar­ket and that their qua­li­ty was con­stant­ly decli­ning.

  • Com­pa­ny exis­tence of around six years
  • Pushed tra­ding tur­no­ver com­bi­ned with high los­ses
  • Busi­ness model, struc­tures and pro­ces­ses are still unsta­ble

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