European venture builder Rocket Internet to delist from stock market

Listing on the stock exchange is no longer the most attractive way to raise money, and Rocket believes that it has access to enough private funding if it needs to expand in the future, according to a company statement.

It will offer 18.57 euros (US$22.1) each for the shares and will repurchase as much as 8.84% of its stock on the exchange beginning Sept. 1 and expiring on Sept. 15. The company will hold a virtual shareholders meeting on Sept. 24 to pass the resolution, which will go through with a majority of votes.

Rocket CEO Oliver Samwer, who owns 4.5% of the stock, and its Global Founders Gmbh division, which holds about 45% of the shares, won’t tender their holding in the company.

The company went public in October 2014 and was valued at around US$8.2 billion. Since then, however, Rocket has seen its value steadily fall after struggling to continue its initial streak of successful startups. Its shares closed at 18.95 euros (US$22.54) on Monday, giving the company a market value of US$3.1 billion.

Currency converted from EU euro to US dollar: US$1 = 0.84 euro.