The Deliveroo app is displayed on a smartphone screen.
Thiago Prudencio | SOUP Pictures | LightRocket using Getty Images
LONDON – British food delivery company Deliveroo is seeking a valuation of up to £ 8.8 billion ($ 12.2 billion) in its next initial public offering in London.
The company, backed by Amazon, set a price range of £ 3.90 to £ 4.60 per share for its over-the-counter IPO, implying an estimated market cap of 7.6 billion to 8.8 billion of pounds.
Deliveroo’s market debut is one of the UK’s most important listings in recent years. The company announced its IPO plans in London earlier this month, giving the UK capital a big win after Brexit as it aims to attract more high-tech companies. growth.
A government-backed review called for reforms to London’s listing system, including the possibility of listing dual-class stocks like those launched by Google, such as Facebook. Currently, companies are unable to do so in the premium segment of the London stock market, which prevents them from being included in benchmarks such as the FTSE 100.
Deliveroo has opted for a two-class shareholding structure that offers CEO and founder Will Shu improved voting rights. Shu will get 20 votes per share while other investors are only entitled to it. Deliveroo expects to raise £ 1bn in gross revenue from its IPO.
“We are proud to be listed in London, the city where Deliveroo started,” Shu said in a statement on Monday.
“Becoming a public company will allow us to continue investing in innovation, developing new technological tools to support restaurants and grocery stores, offering pilots more work and expanding options for consumers, offering them the food they love most. of more restaurants than ever. “
Deliveroo says it will use IPO revenues 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 the transactions it processes doubled in the first two months of the year, getting a boost from the UK coronavirus block. 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 review of competition over Amazon’s minority investment in the firm, to operating profitability toward the end of the year thanks to increased demand for takeaway apps online driven by the pandemic.
“We’ve seen a strong start to 2021 and we’re just at the start of an exciting journey into a large, fast-growing online food delivery market, with a huge opportunity ahead,” Shu said.
Deliveroo has allocated shares worth £ 50 million to offer to its customers. The company promotes the offer in a large advertisement at the top of its app. It comes as retailers have been piling up in the stock market in recent months, a phenomenon that has caused huge fluctuations in the prices of very short stocks like GameStop and AMC.