Deliveroo sees investors demand soar in upcoming London stock market debut

© Reuters. FILE PHOTO: Deliveroo delivery rider cycles in London, Britain

By Pamela Barbaglia

LONDON (Reuters) -Food delivery company Deliveroo has seen investor demand for its initial public offering (IPO) exceeding the full deal size, setting the stage for London’s biggest initial public offering (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 and 8.8 billion pounds ($12.11 billion).

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

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

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

The upcoming listing is set to be London’s biggest IPO since Glencore (LON:) in May 2011 while also becoming the biggest tech IPO on the LSE, dwarfing The Hut Group from last year and the since-delisted Worldpay Group from 2015.

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

READ  Australia to introduce landmark Google, Facebook legislation to parliament next week

($1 = 0.7266 pounds)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Please enter your comment!
Please enter your name here