PYMNTS-MonitorEdge-May-2024

SPAC Led By Rocket Internet Co-Founder Files For IPO In $250 Million Deal

SPAC Led By Rocket Internet Co-Founder Files For IPO In $250 Million Deal

Rocket Internet Growth Opportunities Corp., a blank-check company whose management team includes members of Rocket Internet’s leadership, plans to go public on the New York Stock Exchange (NYSE) in a $250 million deal, according to a Form S-1 filing.

The special purpose acquisition company (SPAC), which plans to trade under the “RKTAU” ticker symbol, intends to offer 25 million units comprised of one Class A ordinary share and one-fourth of one redeemable warrant for $10 per unit.

Rocket Internet Growth Opportunities Corp’s chairman is Oliver Samwer, who serves as Rocket Internet’s co-founder and chief executive. The SPAC’s Chief Executive Soheil Mirpour is a member of Rocket Internet’s management board, while the SPAC’s CFO Donald E. Stalter Jr. supervises the North American portfolio of GFC Global Founders Capital GmbH.

The SPAC seeks to “support the disruption of outdated business models, with a particular focus on marketplaces, eCommerce, enterprise [Software-as-a-Service] SaaS, FinTechs, HealthTechs and artificial intelligence,” according to the regulatory filing.

However, the SPAC said in the filing that it has not chosen a specific merger target and that it has “not, nor has anyone on our behalf, engaged in any substantive discussions, directly or indirectly, with any business combination target with respect to an initial business combination with us.”

The SPAC’s sponsor is an affiliate of Rocket Internet, which has incubated and backed web and tech firms for more than 13 years, with a history of over 300 tech investments. Many of Rocket Internet’s existing and past portfolio firms and investments have been listed in public markets such as Global Fashion Group, Jumia, Hello Fresh, Delivery Hero and Zalando.

The news comes as Rocket Internet was progressing with plans to go private after watching the value of shares steadily decline. “Rocket Internet is better positioned as a company not listed on a stock exchange,” the company said in a previous statement. “Outside a capital markets environment, the Company will be able to focus on a long-term development irrespective of temporary circumstances capital markets tend to put emphasis on.”

PYMNTS-MonitorEdge-May-2024