German Startups Group Berlin GmbH, an investor in companies including SoundCloud, plans to raise about 62 million euros ($68 million) in an initial public offering to fund acquisitions of technology businesses.
German Startups will offer 20 million new shares at 2.70 euros to 3.60 euros each, the company said in a statement Wednesday. Trading on the Frankfurt exchange will begin July 17. If underwriters exercise the so-called greenshoe option to sell more stock, existing holders may sell as many as 2.098 million additional shares, German Startups said.
The IPO would offer investors an alternative in Germany to the Samwer brothers’ Rocket Internet SE, whose shares have lost 11 percent since its initial stock sale in October. While Berlin-based Rocket helps found and build Internet companies, crosstown competitor German Startups provides capital, Chief Executive Officer Christoph Gerlinger said last month.
German Startups invests mainly in new ventures in German-speaking countries, including music-distribution service SoundCloud, which competes with businesses such as Google Inc.’s YouTube. The company has holdings in about 40 businesses and said that, as of March 31, the average annual return had topped 30 percent since it started investing in mid-2012.
“We consider our business model to be independent of the current economic developments,” Gerlinger said. “Our success and the success of our investments are much more dependent of how well our portfolio companies generate value,” Gerlinger said in the statement.
Commerzbank AG is arranging the IPO with Hauck & Aufhaeuser Privatbankiers KGaA, BHF-Bank AG and Quirin Bank AG.
Assuming the shares are priced at 3.15 euros, the middle of the forecast range, the sale will result in net proceeds to the company of about 62 million euros. If all additional shares are sold to meet demand, German Startups’ existing owners will retain a 23 percent stake, implying a total company value of 80 million euros.
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