Tuesday, July 14, 2015

SHARES IN FOCUS 2: Rocket Internet crash – loaded convertible – ABC Online

Tuesday , 07.14.2015, 17:48
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The announcement of a convertible bond EUR 550 million has to crash the shares of Rocket Internet on Tuesday.

With the fresh money the startup will forge its expansion push. That brought speculators on the idea to push the current share price in order later to knock out the highest possible bonus if they exchanged their convertible bonds later in shares, Portfolio Manager Ludwig Donnert Orca Capital.

After a very weak Start sacked the Rocket papers further by up to 33.51 euros. That was the lowest level since October 10, 2014. It was not until the beginning of October, the company for 42.50 euros per share was gone public and had in the meantime risen to just over 60 euros per share to. On Tuesday, the shares closed with minus 12.79 percent at 35.705 euros.

SPECULATORS PRESS current price

The convertible bonds can be exchanged in 10.2 million Rocket Internet shares, corresponds to 6.2 percent of the current share capital, the company had also informed. Thus, the exchange of securities in shares for investors worthwhile future, the price of the shares over the coming years would have to rise significantly.

On Monday was the Rocket Internet share with 40.94 euros from trading gone. Measured by the share price would have to rise to at least 54.25 euros, enable investors to make a good deal. The conversion premium is to be 32.5 to 47.5 percent higher than the average price of the share of this Tuesday – the lower this is, the higher the bonus

Also dealer Andreas Lipkow from asset managers Kliegel & amp;. Hafner saw “the classic arbitrage between the convertible bond and the shares” as a course load. “Secondly, the high capital requirement is very daunting,” said the expert continues. Rocket currently have no noteworthy candidate for an IPO that would justify the current valuation of the stock.

 

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