Rocket Internet, the German tech investment company, has reeled out plans to delist from the Frankfurt Stock Exchange six years after it went public.
A Rocket Internet statement confirmed this move saying that it was offering investors 18.57 euros ($22.23) for each of their shares, lower than Monday’s closing price of 18.95 euros. The company’s shares rose on the news Tuesday morning, before falling around 1.3%.
On why it took the decision to delist, Rocket Internet said it was “better positioned as a company not listed on a stock exchange” as this would allow it to focus on long-term bets.
“The use of public capital markets as a financing source as essential parameter for maintaining a stock exchange listing is no longer required and adequate access to capital is secured outside the stock exchange,” the company said in a statement.
“Outside a capital markets environment, the Company will be able to focus on a long-term development irrespective of temporary circumstances capital markets tend to put emphasis on.”
Founded in 2007, Rocket Internet became controversial for building start-ups that cloned the business models of U.S. internet giants such as Amazon, Uber and Airbnb.
For its part, Rocket Internet says it merely adapts proven models for untapped local markets. Some of its most notable bets include German e-commerce firm Zalando, food delivery service Delivery Hero, and meal-kit provider HelloFresh.
Jumia was once one of Rocket Internet’s portfolio companies. However, the startup incubator recently sold its 11% stake in the African eCommerce company.
Rocket Internet has seen its share price steadily decline in the years since it went public, falling from a market value of 6.7 billion euros ($8 billion) on the day of its IPO to just 2.6 billion euros as of Tuesday. The stock is down almost 15% year-to-date.
Rocket Internet will hold a virtual shareholder meeting on Sept. 24 with the aim of getting approval for its plan to delist. The company said it had also launched a separate buyback program to secure 8.84% of its shares from the stock market. It aims to complete this buyback by the end of Sept. 15.
