Trouble for Rocket Internet Doesn’t Stop, Kinnevik Sells Half Its Shares. What Now?

Rocket Internet.png

The trouble for Rocket Internet just doesn’t stop.

Kinnevik, formerly the main investor in Rocket Internet, sold half of its shares yesterday:

Kinnevik AB today announced that Kinnevik Internet Lux S.à r.l. (“Kinnevik”) has completed the placement of approximately 10.9 million shares (the “Placing Shares”) in Rocket Internet SE (the “Company”) to institutional investors by way of an accelerated bookbuilding process (the “Transaction”). The placement price is EUR 19.25 per share. The Placing Shares represent 6.6% of the Company’s issued share capital and constitute 50% of Kinnevik’s shareholding in the Company before the Transaction. […]
Kinnevik’s gross proceeds from the Transaction will amount to EUR 209m. […]

Following settlement of the Transaction, Kinnevik will hold approximately 10.9 million shares in the Company, representing 6.6% of the Company’s issued share capital.

The ongoing shism between Rocket and Kinnevik seems to finally heading into a split between the two companies. While Kinnevik itself is morphing into a sort of Rocket 2.0..:

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..Rocket is morphing into Kinnevik 2.0 by turning from company builder into an investor with its Rocket Internet Capital Partners Fund.

Kinnevik selling its shares in Rocket was thus just a matter of time. (Expect the second half of Kinnevik’s shares to be gone within the next few months, maybe by summer.)

This, again, increases the pressure on Rocket Internet, whose share price is, shall we say, not doing that well:

Rocket share price.png

So what next? Rocket could really use a successful IPO by a portfolio company around right now. The only slightly viable candidates for an IPO at this moment are HelloFresh and DeliveryHero, in which Rocket unusually for its MO then (and controversially for its investors) invested in in 2015,..

My money is on HelloFresh getting the short end of the stick here.

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