FRANKFURT (Reuters) – Investors gave Rocket Internet, the global e-commerce investor, a chilly welcome to the Frankfurt stock exchange on Thursday letting its shares drop up to 14 percent.
Shares in the Berlin-based company started trading at the offer price of 42.50 but fell to 36.66 euros after a few minutes. By 0805 GMT, the shares were down 2.6 percent at 41.40 euros.
With expected gross proceeds of 1.4 billion euros ($1.8 bln) excluding a greenshoe option, it is Europe’s largest internet IPO since 2000, which marked the peak of the dotcom bubble.
The management team of Rocket Internet fled into a closed booth right after ringing the IPO bell, evading journalists questions over the pricing of the debut.
“Look at the market sentiment, it’s really bad, so it’s no surprise that the shares went down initially,” said one of the IPO organizers, who asked not to be named. “You should not over-interpret the importance of the first few minutes of trading.”
Germany’s blue chip index DAX was down 0.4 percent after an hour of trading while the technology-oriented TecDax was down 0.9 percent.
(1 US dollar = 0.7920 euro)
(Reporting by Arno Schuetze and Harro ten Wolde; Editing by Georgina Prodhan)
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