Address

Precise Investors

Thursday, June 17, 2021
Stocks & Shares

Deliveroo confirms £7.6 billion valuation in London listing

Deliveroo

The company plans to raise nearly £1 billion by selling shares to new investors, with a further £500 million worth of shares to be sold to existing backers

Deliveroo has confirmed that it will be valued at nearly £7.6 billion in its bumper London listing.

Earlier this month, the takeaway delivery giant said it hoped for a valuation between £7.6 billion and £8.8 billion.

However, it has said it will now price shares at the very bottom of its potential range after a number of leading UK fund managers said they would reject the listing amid concerns over workers’ rights issues and its shareholder structure.

The company said it will offer new shares to investors at a price of 390p per share.

It said it plans to raise around £1 billion through selling shares to new investors, with a further £500 million worth of shares to be sold to existing backers.

Deliveroo said it plans to invest the funds into continuing its growth trajectory and fuelling its innovation efforts.

Deliveroo founder Mr Will Shu said: I am very proud that Deliveroo is going public in London – our home. As we reach this milestone I want to thank everyone who has helped to build Deliveroo into the company it is today – in particular our restaurants and grocers, riders and customers.

In this next phase of our journey as a public company we will continue to invest in the innovations that help restaurants and grocers to grow their businesses, to bring customers more choice than ever before, and to provide riders with more work, he said.

Our aim is to build the definitive online food company and we’re very excited about the future ahead, Mr Shu said.

Last week, some of the UK’s largest fund managers, including Legal & General and Aviva, said they would reject the flotation, highlighting issues related to its business model, workers’ rights and regulatory concerns.

Firms have also raised concerns over the share structure, which will see founder Will Shu have 20 votes per share, compared with one per share for other investors, giving him a majority position at shareholder votes.

Important:

The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply

1 × two =