A Deliveroo messenger travels down Regent Street handing out takeaway food in central London during Covid-19 level 4 restrictions.
Pietro Recchia | Images SOUP | LightRocket via Getty Images
LONDON – Food delivery service Deliveroo wants to raise £ 1bn ($ 1.4 billion) by selling new shares of its next initial public offering on the London Stock Exchange.
The company announced Monday that some of its existing shareholders will also sell some of its shares.
Along with Amazon, Deliveroo is also supported by investors such as Durable Capital Partners, Fidelity, T. Rowe Price, General Catalyst, Index Ventures and Accel.
Deliveroo also plans to offer £ 50 million in stock to its customers.
According to a report from tech media website Sifted on Monday, some of Deliveroo’s top sponsors will earn 60,000% of their investment.
Deliveroo was valued at $ 7 billion in July when it raised an additional $ 180 million from investors. Reports have suggested it could be valued at about $ 10 billion after the IPO.
Goldman Sachs and JP Morgan Cazenove have been named joint global IPO coordinators. A date when the initial public offering has not been officially announced, but is likely to be in the coming weeks.
Last week’s presentation included details on Deliveroo’s dual-class share structure, which will allow Deliveroo CEO Will Shu to get 20 votes per share, while the remaining shareholders will only be entitled to one vote per share.
Last week, the company also revealed that it produced a loss of £ 223.7 million in 2020. Losses are substantially less in 2020 than in 2019, however, when the London-based firm recorded a loss of £ 317 million. million pounds.
While the eight-year-old company remains negative, its revenue amounted to £ 4.1 billion in 2020, compared to £ 2.5 billion in 2019.
The turn of Deliveroo
Deliveroo went from near-failure in 2020 amid a review of competition in Amazon’s minority investment, to turning an operating profit toward the end of the year thanks to increased demand for online shuttle services driven by coronavirus blockade.
Today Deliveroo claims to have more than 115,000 food merchants, 100,000 restaurants and millions of consumers in 12 countries. The presentation shows that six million orders are placed on Deliveroo each month.
Amazon backed Deliveroo in May 2019, leading a $ 575 million funding round in exchange for a 16% stake in the business.
In July 2019, the UK’s antitrust regulator, the Competition and Markets Authority, argued that Amazon’s Deliveroo cash injection could reduce competition by eliminating the possibility of the e-commerce giant returning to entering the market, while Deliveroo “would cease to be different.” “He froze the investment for almost a year while researching.
To the disappointment of rivals Just Eat and Domino’s Pizza, the deal was approved by the CMA in August after Deliveroo said it could stop working without the capital.
As interest in the food supply market continues to grow, UBS analysts have cited seven stocks in the sector that will increase by up to 30%.
People who place a take-away order more often (and spend more when they do) means the sector could reach a value of nearly $ 400 billion by 2024, the bank said. Meanwhile, an estimate from Euromonitor said it could be worth a trillion dollars in the next decade.
– Additional reports from CNBC’s Ryan Browne.