Rocket Internet sets convertible bond sale in latest fundraising

By Eric Auchard LONDON (Reuters) - Emerging markets e-commerce investor Rocket Internet plans to sell 550 million euros ($605 million) worth of convertible bonds, in a third round of financing just nine months after its initial public offering. The Berlin-based company said the offering of senior, unsecured convertible bonds will initially be convertible into around 10.2 million shares of the company's stock, representing a dilution of about 6.2 percent of Rocket's outstanding shares. The bonds will have a maturity of seven years, carry a coupon between 2.25 percent and 3.00 percent per annum and a conversion premium between 32.50 percent and 47.50 percent above the average share price of Rocket on Tuesday, July 14, when the offering will take place. Europe's largest Internet company, founded in 2007, is viewed as a potential launch pad for future stock market listings of everything from online fashion to home furnishings and personal finance. But Rocket's voracious appetite for cash to fund its far-flung business investments has sent its shares back to levels at the time of its initial public offering last year. Its stock price peaked around 57 euros just before the company surprised investors with a capital hike in mid-February. Shares of Rocket closed at 40.94 euros, up 2.21 percent on Monday but lower than the 42.50 euro price at which its shares were originally priced in early October last year but just above its 37-euro closing price after its first day of public trading. The company said it had committed to a three-month lock-up on further stock or equity-linked transactions. J.P. Morgan is the sole bookrunner for the bond offering, the company said. Last month, at its first annual shareholder meeting, Rocket won investor support to raise as much as 4.5 billion euros ($5 billion) over the next five years to invest in new ventures and increase stakes in its existing start-ups. (Reporting by Eric Auchard; editing by Susan Thomas)