June 1, 2018 / 3:19 PM / 2 months ago

Germany's Home24 to have market value of up to 650 mln euros post-IPO

FRANKFURT (Reuters) - German online furniture retailer Home24 has set the price range for its initial public offering (IPO) at 19.50 to 24.50 euros, which would give it a market value of 530 million to 650 million euros ($618-758 mln) following its stock market flotation.

Investors will have until June 13 to submit purchase orders and the shares are to start trading on the Frankfurt stock exchange on June 15, the group said on Friday.

The offer will comprise as many new shares as Home24 needs, up to around 7.69 million, to raise gross proceeds of 150 million euros. In addition, 1.25 million existing shares will be available for over-allotments.

“We have received positive feedback from investors since announcing that we are pursuing to list Home24 on the Frankfurt Stock Exchange,” co-Chief Executive Marc Appelhoff said in a statement.

“We believe that the new capital will allow us to continue on this path and reach group-wide profitability on an adjusted EBITDA (earnings before interest, tax, depreciation and amortization) basis within the next 18 months,” he added.

Launched in 2009 in Berlin, loss-making Home24 delivers furniture in seven European markets, plus Brazil.

It has said it plans to use the proceeds of its listing to invest in property, equipment and technology and to repay outstanding debt.

Ecommerce investor Rocket Internet (RKET.DE) currently holds a 41 percent stake, and other investors include Sweden’s Kinnevik (KINVb.ST) and Baille Gifford. Following the IPO, up to 32.4 percent of Home24 shares will be freely traded.

Berenberg, Citigroup, and Goldman Sachs International are acting as joint global coordinators and joint bookrunners for the listing.

Reporting by Maria Sheahan, Nadine Schimroszik and Alexander Huebner; Editing by Adrian Croft

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