Zalando Market Debut Mixed As Shares Zigzag

Shares in German online retailer Zalando jumped 12 percent in their stock exchange debut, but the stock soon pared gains to trade near its issue price.



In one of the most highly anticipated IPOs this autumn, Europe's biggest online retailer Zalando saw its shares shoot up by 12 percent to 24.10 euros each at the start of trading in Frankfurt on Wednesday, valuing the company at around 6 billion euros ($7.6 billion).



Within the first hour of trading, shares dropped back close to their issue price of 21.50 euros. The debut, which is part of a wave of e-commerce listings this year and follows Alibaba's US debut last month, fell short of analysts' expectations, as the stock had climbed to over 30 euros in pre-market trading.



On Thursday, Germany's Rocket Internet, which adapts Silicon Valley business models for markets outside the US and China and helped launch Zalando, is scheduled to list in Frabkfurt on Thursday. The company decided to bring forward its flotation by a week due to strong demand.



Zalando, which began in 2008 by selling shoes in Germany, now ships 1,500 brands to customers in 15 countries.



ng/uhe (Reuters, dpa)