Online retailer Zalando's IPO, planned for October, may be smaller than anticipated, as the estimated sum could possibly only reach a sum between 380 and 570 million euro.
No final decisions
"I do not think it will be a transaction larger than a billion euro, but no final decisions have been taken yet", a Reuters source said about Zalando's alleged billion euro IPO. It also revealed that Zalando was planning on bringing 10 to 15 % of shares to the stock exchange.
Originally, the IPO would allegedly have been worth more than a billion euro, which would make Zalando's IPO the largest European technological IPO since German T-Online went public in 2000. The IPO should be launched by October, with an official reveal in September. Credit Suisse, Morgan Stanley and Goldman Sachs are all helping Zalando prepare its IPO.
Shares under pressure
Swedish Kinnevik had previously stated that its 36 % stake in Zalando was worth 12.14 billion Swedish krona (1.33 billion euro) and based on that evaluation, a 10 to 15 % stake would be worth 380 to 570 million euro.
Reuters believes Zalando is finding it hard to convince shareholders to sell their shares at the IPO, while technological shares are also under pressure at the stock exchange, which would explain why Zalando is preparing a smaller IPO.