German online retailer Zalando has confirmed that it will seek to list on the Frankfurt Stock Exchange later this year.
The retailer said in an announcement today that it expects to offer between 10% to 11% of the business through the initial public offering (IPO).
According to Bloomberg the offering could value the company at €4bn (£3.19bn) to €5bn (£3.99bn).
Zalando said existing major shareholders would retain their equity stakes. The largest five shareholders are Investment AB Kinnevik (36%), Global Founders (17%), Anders Holch Povlsen (10%), DST Europe (8%) and Holtzbrinck Ventures (8%).
Rubin Ritter, a member of the management board of Zalando, said: “Reaching break-even in the first half of 2014 is an important milestone, proving once more the attractiveness of our business model. Listing our shares on the stock market is the logical next step in Zalando’s evolution as it, in combination with raising additional capital, provides us with more flexibility to pursue our long-term growth ambitions, independent of market conditions and economic cycles.”
Lorenzo Grabau, chief executive of Investment AB Kinnevik which owns 36% of Zalando, added: “Kinnevik is delighted about Zalando’s plans to list on the Frankfurt stock exchange. We first invested in Zalando in 2010 and since then have invested cash of SEK 5.5bn to become the company’s largest shareholder. We look forward to continuing to work with Zalando’s founders and management team, and to support their future growth ambitions after the listing.”
Zalando sells footwear and clothing across 15 European countries and was forged from the Berlin-based Samwer brothers’ Rocket Internet incubator.
Sales rose 25% to €501m (£409m) in the three months to March 31, down from the 36% growth rate in the previous quarter.