Rocket Internet apparently plans IPO shell

The investment firm is looking to take a SPAC public on the New York Stock Exchange, according to a report, and is currently seeking backers to do so.

Germany has now also gotten in on the Spac hype. As Finance Forward

magazine reports, Rocket Internet is now planning to take a shell company public on the New York Stock Exchange. The German start-up incubator has apparently approached various backers in recent weeks and is looking to raise a three-digit million sum. The backing bank is said to be Citibank. Neither company initially commented on the matter to the magazine.

For Spacs, which go public as an empty shell company, the big challenge is to find a suitable startup within 24 months to take over and merge with the shell company. If the deadline is not met, investors get their money back. In the U.S., the trend of SPACs has been present for some time, and suitable takeover candidates are increasingly in contention.

Rocket Internet was itself listed until last year, but decided to delist, earning itself a lot of trouble from its shareholders, some of whom are suing the Oliver Samwer-led company.