The Deliveroo application is displayed on the screen of a smartphone.
Thiago Prudencio | Images SOPA | LightRocket via Getty Images
LONDON – British food delivery company Deliveroo is seeking a valuation of up to £ 8.8bn ($ 12.2bn) in its upcoming initial public offering in London.
The company, which is backed by Amazon, set a price range of between £ 3.90 and £ 4.60 per share for its successful initial public offering, implying an estimated market capitalization of between £ 7.6 billion and £ 8.8 billion.
Deliveroo’s market debut is set to be one of the UK’s biggest listings in years. The company announced plans for the IPO in London earlier this month, giving the UK capital a huge post-Brexit victory as it aims to attract more high-growth tech companies.
A government-backed review called for reforms to London’s listing regime, including the ability to list dual-class shares like those started by companies like Google and Facebook. Currently, companies are not able to do so in the premium segment of the London stock market, which prevents them from being eligible for inclusion in benchmarks such as the FTSE 100.
Deliveroo has opted for a dual-class share structure that gives CEO and founder Will Shu better voting rights. Shu will get 20 votes per share, while other investors are only entitled to one. Deliveroo expects to raise gross proceeds of £ 1 billion from its IPO.
“We are proud to be listed in London, the city where Deliveroo started,” Shu said in a statement Monday.
“Becoming a public company will allow us to continue investing in innovation, developing new technological tools to support restaurants and grocery stores, providing passengers with more work and expanding options for consumers, bringing them the food they love from more restaurants. never”.
Deliveroo says it will use proceeds from the IPO to improve its platform and deepen on-demand grocery deliveries, which have benefited greatly from the coronavirus pandemic.
In a business update on Monday, Deliveroo said the total value of transactions it processes more than doubled in the first two months of the year, received a boost from the coronavirus lockdown in the UK. Volumes grew 130% year-on-year in the UK and Ireland, while other markets grew 112%.
Deliveroo went from near failure in 2020 amid a competitive review of Amazon’s minority investment in the company, to operating profitability by the end of the year thanks to increased demand for online takeout apps driven by the pandemic .
“We have seen a strong start to 2021 and we are only at the beginning of an exciting journey in a large, fast-growing online food delivery market, with a huge opportunity ahead,” said Shu.
Deliveroo has earmarked £ 50 million worth of shares to offer to its customers. The company is promoting the offer in a large banner ad near the top of its app. It occurs when retail traders have been piling up on the stock market in recent months, a phenomenon that led to huge fluctuations in the prices of very short stocks like GameStop and AMC.