Shares in Europe's biggest online retailer Zalando rose as much as 12 percent in their hotly anticipated Frankfurt debut, but quickly fell back leaving traders disappointed. It's a busy week for German IPOs. Amy Pollock reports
Shares in Europe's biggest online fashion retailer rose as much as twelve percent as Zalando made its debut at Frankfurt's stock exchange. But the price soon fell back. Oliver Roth is Chief Trader at Close Brothers Seydler. (SOUNDBITE) (German) CLOSE BROTHERS SEYDLER BANK CHIEF TRADER, OLIVER ROTH, SAYING "It started weak and then suffered heavy losses. The first trading price was at 24.10 euros, clearly below expectations of the last few days. Meanwhile the price has fallen to just under 22 euros so there is definitely a feeling of disappointment among investors and traders." E-commerce IPOS are having their moment - China's Alibaba listed last month. And another German firm Rocket Internet - which helped launch Zalando - will now float on Thursday - a week early following strong investor demand. Some say the excitement is overblown. But with Rocket's Oliver Samwer on board Dominic Elliott from Reuters BreakingViews says that's not the case with Zalando. (SOUNDBITE)(English) BREAKINGVIEWS COLUMNIST, DOMINIC ELLIOTT, SAYING: "Now Zalando was originally part of the Rocket Internet portfolio, but was spun off and it's been valued at 5.6 billion euros, it's turned a profit so he has proven that he can create companies that can turn profitable and also that can grow very, very fast." Zalando was only set up six years ago but it already ships 1,500 brands to 15 countries and has even bigger plans. Board member Rubin Ritter. (SOUNDBITE) (German) ZALANDO MEMBER OF MANAGEMENT BOARD, RUBIN RITTER, SAYING: "With the money, we are perfectly financed and in a perfect position which is always important to us. It gives us a competitive edge. We will invest in new technologies to create better means for clients to buy shoes and fashion online." But sustaining that kind of growth may be hard. And the mixed fortunes at a British rival may make some investors wary - Asos stock has fallen 70 percent since February.