An average Zalando IPO meant that everyone was watching what Rocket Internet would do, but the German internet player failed to triumph. Both Zalando and Rocket Internet are no Alibaba.
10 % nosedive
Rocket Internet's share was valued at 42.5 euro, the higher echelons of its price range, which turned out to be a little bit too optimistic. In the first hour of trading, it lost 10 % of its value, even though it managed to claw back up. Nevertheless, it cannot be considered a success.
Its IPO attracted 1.6 billion euro, Germany's largest IPO since 2007, although the Samwer brothers won't be comforted by that thought.
Zalando still struggles
Online store Zalando, partly owned by Rocket Internet, has also struggled on its debut. Its shares went up instantly, but fell down again, only marginally trailing about its introduction price.
The day after, it lost 9 %, which it managed to overturn slightly, even though it was still trailing 7 % around noon.
It is clear that neither Zalando nor Rocket Internet were able to meet the high expectations, partly generated through Alibaba's tremendous IPO. Alibaba's share is still worth 86.1 dollar, well above its 68 dollar introduction price.