By Cris Larano

MANILA--Philippine Long Distance Telephone Co. on Wednesday said it welcomed Rocket Internet AG's plans for an initial public offering, weeks after the telecommunications company agreed to acquire a stake in the German firm.

PLDT in August agreed to acquire 10% of Berlin-based Rocket Internet for 333 million euros ($431 million) and has already paid half that amount. PLDT's stake, however, was subsequently diluted to 8.6% after the entry of another investor, United Internet AG.

Rocket Internet plans to sell only new shares that would be created from the increase in the company's capital stock. The company said proceeds from the IPO would finance future growth.

The German company, a founder of technology startups, plans to list on the Frankfurt Stock Exchange later this year.

Write to Cris Larano at cris.larano@wsj.com