Valuation of 4.4 billion euros! Germany About You will be available soon

Introduction: About You in Germany will be launched soon...

Foreign media reported that Germany's About You is seeking to raise 941 million euros in the Frankfurt IPO. Its price is between 21 euros and 26 euros, which means a market value of up to 4.4 billion euros.

The private placement will be fully participated by institutional investors and is expected to be completed on June 14. Only institutional investors can buy. The first day of trading on the Frankfurt Stock Exchange is scheduled for Wednesday, June 16. With the IPO funds, About You will expand further, and the proceeds can also be used for technology investment.

About You is a fashion and technology company based in Hamburg. In 2014, it was founded by technology entrepreneurs Sebastian Betz and Tarek Müller and former Otto Group strategist Hannes Wies. About You aims to digitize the classic shopping mall by creating a personalized shopping experience on a smartphone, catering to young women in their 20s and 30s.

About You operates in 23 European countries including the Czech Republic. Its competitor in the consumer sector is Zalando, and in the enterprise platform it is Shopify, SAP and Salesforce. Tarek Müller, the company's co-founder, said that he looks forward to expanding the investor base and building the company into the world's leading fashion platform.

In the year ended in February, About You generated more than 1 billion euros in sales through its app directly to consumers. Calculated at an average of 1.7 times that of competitors Zalando (ZALG.DE) and Asos  (ASOS.L), its value is 1.9 billion euros.

Last quarter, the company achieved pre-tax interest and profit before depreciation (EBITDA) for the first time since its establishment. The German-speaking market accounts for more than half of its sales. Last year sales increased by 29%, and the EBITDA margin was positive. In the rest of Europe, the company's sales increased by 145%, but the profit margin was negative. About You predicts that this year's sales will increase by 40% to 50%.

At the same time, its fashion business is similar to that of the US e-commerce giant Shopify (SHOP.TO), helping brands such as Marco Polo sell clothing online, with revenue of 84 million euros. At 30 times the sales of Shopify, it can earn 2.5 billion euros.

Tarek Müller, the boss of About You, said: “The planned IPO provides us with an opportunity to further realize digital shopping on the basis of strong growth.”