Will Shu, CEO of Deliveroo.
Aurelien Morissard | IP3 | Getty Images
LONDON – Deliveroo plans to raise £ 1bn ($ 1.388bn) in its initial public offering next month, when it is expected to debut on the London Stock Exchange.
The food delivery service plans to offer up to 256,456,256 new shares between £ 3.90 and £ 4.60 per share, according to the company’s brochure, which was released on Tuesday. Existing shareholders also plan to sell up to 128,205,128 shares.
The IPO will value the company between £ 7.6 billion and £ 8.8 billion, a figure higher than previous reports had suggested. Even at the lower end of the range, Deliveroo will continue to be the largest IPO in Europe so far this year and the largest in Britain for a decade.
Deliveroo’s IPO is expected to turn the company’s major shareholders into hundreds of millions. Some of them will unload some shares of the IPO, but investors plan to keep most of them.
The biggest individual winner will be Deliveroo CEO Will Shu. After the IPO, it will have 115,227,441 shares, ie 6.3% of the share capital. You will also have more than 50% of the voting rights. Assuming Deliveroo prices are 4.25 pounds per share, the midpoint of the range, Shu’s stake will be worth about 490 million pounds. However, it could go up to £ 530 million if the price is at the top end of the range.
In general, Amazon will get the most out of the IPO. The tech giant will maintain a 11.5% stake (209,720,160 shares) in Deliveroo after the IPO, which will be worth about £ 1bn depending on the price. It currently holds 15.8%, but plans to sell 23,302,240 shares between £ 90.8m and £ 107.2m, depending on prices.
Meanwhile, Index Ventures, which has also supported Facebook and Slack, will be left with a 7.5% stake of about £ 577 million if it trades in the mid-range, while DST Global, which has also supported at the fintech Checkout in the UK, it will be left with a 7.4% stake worth £ 569 million. The two companies plan to sell about 15 million shares for about £ 60 million.
Other VCs that will win big are Greenoaks, T. Rowe and Fidelity, who will also participate between £ 450 million and £ 500 million each. Meanwhile, Bridgepoint and Accel will hold stakes of around £ 300 million if prices are in the mid-range.
The Deliveroo listing will be made on April 7th. The action marker is currently unknown, but options include “ROO” and “DROO”.
The company’s brochure shows that Deliveroo’s revenue increased 54% in 2020, while gross margin increased from 24% to 30%. However, Deliveroo still recorded a loss of £ 224 million in the full year.
It comes after US rival DoorDash was valued at $ 60 billion in a IPO in the New York Stock Exchange in December. Meanwhile, Grubhub was worth just $ 5 billion when it went public in 2016.