Deliveroo Sees Investors Demand Soar For London Stock Market IPO

By Steve Wynne-Jones
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Deliveroo Sees Investors Demand Soar For London Stock Market IPO

Food delivery company Deliveroo has seen investor demand for its initial public offering (IPO) exceed the full deal size, setting the stage for London's biggest IPO in a decade.

The London-based firm is expected to make its stock market debut on March 31 with a market capitalisation of between £7.6 billion (€8.9 billion) and £8.8 billion (€10.3 billion)

Banks working on the deal said on Monday that its books were covered throughout the price range of between £3.90 and £4.60 per share, indicating investors demand exceeded the full deal size.

Deliveroo has opted not to pursue a premium listing, which allows founder and chief executive Will Shu to retain enhanced shareholder rights. This rules it out of inclusion in the FTSE indices.

Gross Transaction Value

The company has benefited from the closure of restaurants for anything other than takeaways during the COVID-19 crisis and revenues have soared, with so-called gross transaction value - which measures the total value of orders received - rising 64.3% in 2020 to £4.1 billion.


The listing is set to be London's biggest IPO since Glencore in May 2011 and it will be the biggest tech IPO on the LSE, dwarfing The Hut Group last year and the 2015 listing of Worldpay Group, which has since delisted.

JPMorgan and Goldman Sachs are acting as joint global coordinators on the deal while Bank of America, Citigroup, Jefferies and Numis are the joint bookrunners.

Amazon Share

Last week, Amazon said that it is to cut its stake in British food delivery company Deliveroo to 11.5% in the upcoming initial public offering, from 15.8% previously.

Amazon raised its stake in Deliveroo to 16% last year in a deal that had to be cleared by the UK's competition watchdog, and participated in a $180 million private funding round in January that valued the firm at more than $7 billion.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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