PLDT sees interest in Berlin startup taking off

MANILA, Philippines–Philippine Long Distance Telephone Co. (PLDT) saw its investment in Rocket Internet AG surge, at least on paper, as the Internet startup developer based in Berlin, Germany, filed for an initial public offering.

Reportedly, the company is valued at about 6.16 billion euros.

PLDT, which invested 333 million euros in Rocket Internet last month, owns about 8.4 percent of the company. The telco’s stake in Rocket has been diluted twice due to the entry of other investors.

Based on the Inquirer’s calculations, PLDT’s stake in Rocket Internet may be valued at almost 520 million euros, assuming it will fully exercise the greenshoe option, and that each share to be issued is priced at the mid-point range of 35.5 to 42.5 euros.

PLDT invested in Rocket Internet to partly co-develop new products and services for the so-called unbanked and uncarded market.

Rocket Internet maintains a presence in the country via online retailers Zalora and Lazada.

The company, which reported 700 million euros in revenue last year but no profit, plans to replicate its successful e-commerce businesses in emerging markets outside the United States and China.

“All existing shareholders of Rocket Internet, including PLDT, will remain invested and will not sell any shares as part of the offering in line with lock-up commitments not to sell or … dispose of their shares for at least 12 months,” PLDT said in a statement on Wednesday.

Rocket Internet reported that the offer period for its shares would commence on Sept. 24 and end on Oct. 7. The shares will be listed on the Frankfurt Stock Exchange on Oct. 9.

“Through our operating platform, we are building and scaling the Internet giants of tomorrow. We are taking proven eCommerce business models to over 75 percent of the world’s population and around 75 percent of its mobile users, who all live in countries outside the United States and China,” said Oliver Samwer, founder and CEO of Rocket Internet. “We have an unmatched track record of operational execution, leveraging our global expertise to move fast and build market leading companies.”

The offer is expected to raise 1.5 billion euros, which the company plans to spend on launching new firms and investing in existing ones.

Rocket intends to invest in some of its younger companies, with a view to build and maintain majority ownership positions in these firms over the long term. Also, Rocket currently plans to invest in consolidating its stakes in some of its more established companies, it said.