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FRANKFURT, Germany — Zalando SE, Europe's largest online shoe and fashion retailer, plans to sell as much as 11 percent of its shares in an initial public offering this year, marking a coming of age for a Berlin-based startup industry that has yet to produce a big sale or IPO.
The seller of everything from $2,000 designer dresses to Adidas AG German soccer jerseys plans to sell between 10 and 11 percent in the second half of this year on the Frankfurt stock exchange, Zalando said in a statement today. The offering may value the company between 4 billion euros ($5.3 billion) to 5 billion euros, people familiar with the matter have said.
Zalando is seeking to go public following a profitable second quarter. Earnings before interest and taxes were 35 million euros in the second quarter and revenue was 546 million euros, the company said last week. The company may post full- year sales of 2.4 billion euros, Kepler Cheuvreux estimates.
“The IPO is the next logical step in the development of Zalando,” said Rubin Ritter, a Zalando management board member.
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The retailer, which sells in 15 European countries, was forged from the Berlin-based Samwer brothers’ Rocket Internet incubator. The company’s largest five shareholders won’t sell in the IPO, Zalando said. Zalando also said it signed a credit line worth 200 million euros.
By Aaron Ricadela; editors: Celeste Perri, Kim McLaughlin.
