Delivery Hero Said to Pick Citigroup, Goldman Sachs for IPO

  • Deutsche Bank also won a mandate to work on the share sale
  • Fourth-quarter listing could raise up to 1 billion euros

Delivery Hero Holding GmbH, the online food delivery startup partly owned by Rocket Internet SE, has picked three banks including Citigroup Inc. and Goldman Sachs Group Inc. to advise on a share listing this year, said people familiar with the matter.

Deutsche Bank AG was also mandated to work on the sale, which is planned for the fourth quarter, the people said, asking not to be named as the details aren’t public. An initial public offering of the Berlin-based company could raise as much as 1 billion euros, they said.

Rocket Internet shares rose 1.25 percent to 18.58 euros at 4:23 p.m. in Frankfurt after earlier gaining as much as 2.8 percent.

Timing the market for a new listing has proved tricky in recent months. Delivery Hero peer HelloFresh AG, another Rocket-backed company that delivers ingredients for home cooked meals, was one of a number of companies to postpone IPOs late last year because of an increasingly volatile market, people familiar with the matter said at the time. German companies raised over $7 billion from IPOs last year, according to data compiled by Bloomberg.

Delivery Hero, also backed by Point Nine Capital, General Atlantic and Insight Venture Partners, has raised $1 billion in financing so far, with its latest fundraising round in June valuing it at over $3.1 billion. While the company doubled sales to 88 million euros in 2014, its operating loss expanded to 70 million euros, from 25.8 million euros in 2013.

Spokesmen for Delivery Hero, Goldman Sachs, Deutsche Bank and Citigroup declined to comment.

Before it's here, it's on the Bloomberg Terminal.