Global Fashion Group to list on Frankfurt Stock Exchange
The Iconic’s parent company Global Fashion Group (GFG) is looking to raise €300 million ($483 million) through an initial public offering that could see it list on the Frankfurt Stock Exchange as early as next month.
The company published an investor statement about its IPO plans on its website on Monday, though it has been reported in the media as far back as November 2018.
GFG did not say when it plans to go public, but the Financial Times reported it will be this year and could be as early as next month.
The company will use the net proceeds from the IPO to invest in its technology platform, customer acquisition and fulfilment and delivery infrastructure, including automation, as well as other general corporate purposes.
Targeting emerging e-commerce markets
GFG runs four fashion websites in what it considers to be emerging e-commerce markets, including The Iconic in Australia and New Zealand, Zalora in Southeast Asia, Dafiti in Latin America, and La Moda in Russia and former Soviet Union states.
Founded eight years ago, the company says it connects over 10,000 global, local and own fashion brands to a market of over 1 billion consumers.
In 2018, GFG reported an adjusted loss before interest, tax, depreciation and amortisation of of €49.8 million, down from €98 million the year before.
After reporting a strong first quarter, it is expecting to generate more than €1.3 billion in revenue this year, and to make additional progress towards EBITDA break-even.
GFG noted that it reached break-even on an adjusted EBITDA basis in its Latin American segment and in Australia, which is part of its APAC segment, in 2018.
“It is still very early days for fashion and lifestyle e-commerce in our markets. Today, most of our markets have less e-commerce adoption than Europe had 10 years ago,” GFG co-CEOs Christoph Barchewitz and Patrick Schmidt said in a statement about the IPO.
“As consumer behaviour migrates towards e-commerce, GFG’s well-known consumer platforms, local teams, and fashion-specific operational infrastructure put us at the forefront of this growth opportunity.”
GFG is majority-owned by Kinnevik, a Swedish company which reportedly has around a 35 per cent stake, and Rocket Internet, a German tech incubator, which reportedly has around a 21 per cent stake.
Goldman Sachs International, Morgan Stanley, Berenberg and HSBC are advising on the IPO.