German online retailer Zalando has launched on the Frankfurt stock exchange with shares starting at 21.5 euro. At the end of the day, it was up 3 %.
Zalando's share shot up quickly when it launched, up 12.1 % to 24.1 euro, but it crumbled as the day progressed. In the end, 3 % profit was left.
11 % of the company's shares were traded publicly, which has resulted in 526 million euro so far. It could reach 605 million euro if certain options are met. If it reaches that number, Zalando's IPO will be the largest IPO in Frankfurt, for a technology company, since Deutsche Telekom in 2000.
Largest technology IPO for a short time
Zalando will not be able to hold on to that record for a long time, as Rocket Internet (Zalando's founder) will go public next week. According to analysts, that particular IPO will result in 1.5 billion euro.
Zalando was founded in 2008 in Germany and thanks to Rocket Internet help and investments, it became a large online retailer and it has announced its first profitable year this year.