With the much awaited initial public offering by the hot internet start-up, Delivery Hero, here is a brief review of some of the companies from the start-up scene in Germany that have gone public.
(1) Delivery Hero:
For the German start-up scene, the Delivery Hero IPO has been one of the most important. In June of 2017, the company went public for €996m, with approximately €465m of new cash and about €300m being used to repay loans. The largest beneficiary the shareholder Rocket Internet, which received roughly €264m. Delivery Hero was valued at €4.4 billion at IPO.
Zalando floated on October 1, 2014. Although since listing the company has traded below the listing price of €21.50 the company continues to trade well. In February 2015, Zalando finally announced that it will be profitable for the first time. Since then, the stock price has risen substantially.
(3) Rocket Internet:
Shortly after Zalando, the company which has been responsible for so many German start-ups, Rocket Internet, also went public. Although investors have been uncertain as to whether the Rocket model can work the company continues to produce a great revenue stream at around €1.4 billion. It is the largest public Internet company in Europe.
In May 2015, Windeln.de went the market. At IPO, the company raised €211 million, with an issue price is €18.50. Since then it has only gone downhill for Windeln.de: It has lost more than 70 percent of its value. In order to stop the crash, Windeln.de has already restructured. Nevertheless, the shareholders are still not convinced of the prospects for the business.
The German Startups Group finally went public on the Frankfurt Stock Exchange in November 2015, after a failed attempt the previous summer. The second attempt was more successful, however, the company has been trading under the initial IPO price since listing.
The Berlin online jewelery dealer Elumeo listed in the summer of 2015 and proposed to raise € 84 million at the IPO but finally raised only €40 million. In the first minutes of trading, however, the price fell below the issue price of €25 and has continued downhill since then. Two years after the IPO, the share price is trading well below the issue price.
Although Ferratum is not a German company, it does a great deal of business in Germany. Since its launch in 2005, the company provides microcredit services to its customers. The issue price on the Frankfurt Stock Exchange was €17 and rinsed a total of €111m. Since then, the value of shares has increased by 30 percent.
In May 2017 Affinitas, which operator portals such as eDarling and EliteSingles, merged with the US dating provider Spark Networks. The US partner is already listed on the New York Stock Exchange. Investors can now invest in the merged company. Since then, the value of the share has fallen by 13 percent. In 2018 the company hopes to generate sales revenue of US$120m and profit of US$20m.
The Düsseldorf search engine Trivago is a success story for the German start-up scene, even if it is now a mature company. Founded in 2005, the company went public in December 2016. The IPO, however, did not take place in Germany but on the New York-based technology network NASDAQ. Trivago raised US$287m.
In the summer of 2016, MyBucks went public in Frankfurt. The Fintech company from Luxembourg provides mainly microcredit to consumers in Africa. MyBucks is active in nine countries and there are also offers in Spain, Poland and Australia. At IPO, the start-up raised €15.5m instead of a planned €50m.