The IPO was significantly over subscribed and the float price was set at euro 42.50. This valued the business at euro 6.7 billion and the company raised euro 1.6 billion through the offering.
However the shares immediately fell on first day trading by 12% to euro 37.50. By Wednesday 8th October, they had slumped to less than euro 32.00, a fall of 25% of the IPO price. Since then, the shares have partially recovered to euro 35.00 - still a loss of euro 1.2 billion in value in just over a week.
The performance of the Rocket Internet shares mirrored that of the German online retailer Zalando which listed the day before Rocket and also fell.
Rocket Internet has 20,000 employees in its companies across over 100 countries, with a combined revenue of more than €700 million in 2013. Rocket Internet is the investment firm behind the startups Carmudi, Lamudi, EasyTaxi, Lazada, Lamido, Zalora, FoodPanda and PricePanda.
The initial decrease in pricing has been put down to bad timing (the overall market is down), poor support by investment banks (not enough buying following the float to support the price) and aggressive pricing of the business (perhaps listed too high).
In addition, once the listing hype has disappeared, some are questioning the overall investment thesis.
A good article from Motley Fool identifies the following three areas to look at: