November 22, 2018 / 12:44 PM / in 24 days

Emerging market fashion ecommerce group preparing IPO - report

BERLIN, Nov 22 (Reuters) - Global Fashion Group (GFG), the emerging markets online fashion retailer set up by German ecommerce investor Rocket Internet and Sweden’s Kinnevik, is planning a stock market flotation, a magazine reported on Thursday.

GFG has previously said a public listing is one option open to the firm, but has not given specific plans. Rocket Internet, which holds a 20 percent stake in GFG, declined to comment.

The German monthly Manager Magazin cited unidentified insiders as saying GFG had already mandated investment banks, including Morgan Stanley and Goldman Sachs, to prepare for a possible listing in March, and the management team was meeting investors in London.

The market is seen as ripe for online fashion listings after the New York flotation of Farfetch in September that valued the luxury ecommerce player at over $5.8 billion.

Rocket Internet has listed a string of startups in recent years, including food groups Delivery Hero and HelloFresh, and online furniture retailers Home24 and Westwing.

GFG, which runs fashion sites in Russia, Latin America, Australasia and south-east Asia, on Tuesday reported third quarter sales rose 17 percent in constant currencies to 265 million euros ($303 million).

Its loss before interest, taxation, depreciation and amortisation narrowed to 21.3 million euros, and it had a cash position of 109 million euros at the end of the quarter.

GFG is seeking a valuation of 1.8-2.5 billion euros, Manager Magazin reported, above the 1.5 billion it was valued at on Sept. 30 by Kinnevik, which holds a 35 percent stake.

$1 = 0.8759 euros Reporting by Emma Thomasson; Editing by Mark Pottter

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