Reports say e-commerce investor Rocket Internet won shareholder approval on Tuesday to raise as much as 4.5 billion euros ($5 billion) in the next five years to invest in new ventures and increase stakes in its existing start-ups.
e-Commerce investor gets shareholder's approval to raise $5bn
The Berlin group raised 1.4 billion euros in a stock market listing in October and then just four months later asked investors for 588 million.
Sources say Europe's largest Internet company, founded in 2007, is viewed as a potential launch pad for future stock market listings of everything from online fashion to home furnishings and personal finance.
According to reports, it already has holdings in more than 100 start-ups and has big expansion plans for which it needs more cash.
The Berlin group raised 1.4 billion euros in a stock market listing in October and then just four months later asked investors for 588 million.
Sources also say the amount of capital it can now raise is equivalent to more than two thirds of its current market capitalization of around 6.4 billion euros.
Rocket currently trades more than 10 percent below the level where its initial public offering was priced in early October last year. They were down 3.6 percent by 9.06 a.m EDT, underperforming in a broadly firmer German market.
At its first annual general meeting on Tuesday, Rocket asked shareholders for permission for a possible capital increase in the next five years of more than 2.5 billion euros based on its current share price.
The two proposals were backed by 89 percent of shareholders represented at the meeting.
Peter Kimpel, Chief Financial Officer said any new capital would be used to invest in new companies, increase stakes in existing companies, build the technology platform and make acquisitions.
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