Delivery Hero, the food delivery business backed by Rocket Internet (FRA: RKET), has confirmed it is preparing public offerings in Frankfurt and Luxembourg in the coming months that could come with a reported valuation of up to €4 billion. The company is targeting proceeds of about €450 million from the newly issued shares.
Delivery Hero operates in more than 40 countries and generated €347 million in revenue in 2016, up 71% YoY. Rocket owns around 35% of the company, while South African internet and media group Naspers (JSE: NPN) holds approximately 10%, following its €387 million investment in May.
Successfully floating Delivery Hero would help to ease concerns over Rocket, with the investor posting a net loss of €741.5 million for 2016. In April, analysts at Barclays mentioned both Delivery Hero and industry peer HelloFresh as key IPO candidates that could help to stem the tide, per Business Insider. Rocket shares, for what it's worth, closed the day down 2%.