UK-Based Deliveroo IPO on London Stock Exchange, Down 26.4% on 1st Day

UK-Based Deliveroo IPO on London Stock Exchange, Down 26.4% on 1st Day

1/4/21 | Hong Kong

UK-based online food delivery company Deliveroo has IPO on London Stock Exchange (LSE), dropping 26.4% on the 1st day of trading (31/3/21) and giving it a market value of $7.69 billion (GBP 5.58 billion) at closing.  Deliveroo IPO price is at GBP 3.90, and on the 1st day of trading, its share price reached a high of GBP 390.39, dropped to a low of GBP 2.71 and closing at GBP 2.87.

” UK Deliveroo IPO on LSE, Drops 26.4% with Market Value of $7.69 billion “

Institutional trading started on 31st March 2021 while the public can start trading on 7th April 2021.  (IPO ~ Initial Public Offering)

Deliveroo, founded in 2013

Deliveroo was founded in London in 2013 by CEO Will Shu and his childhood friend Greg Orlowski.  They paired technology with United Kingdom’s best-loved restaurants to bring great tasting food straight to people’s front door.  Deliveroo’s primary business is to generate demand and bring food to consumers from restaurants, grocery stores and other food suppliers delivered by riders.

By 2020, the company is in 12 markets with more than 115,000 restaurants & grocers, 100,000 riders, 2,000 employees and generated total gross transaction value of GBP 4.08 billion.  In 2020, Deliveroo recorded revenue of GBP 1.18 billion and net loss of GBP 223.7 million.

With the IPO, co-founder and CEO Will Shu estimated net worth is around $500 million to $550 million.  (Will Shu has around 6.3% share of Deliveroo.)

Deliveroo IPO

Deliveroo IPO was priced at GBP 3.90, with 384.6 million shares sold and raising GBP 1.5 billion.  GBP 1 billion will go to the company and GBP 500 million will go to existing shareholders including Amazon and founder and CEO Will Shu.  At GBP 3.90, Deliveroo has a market capitalisation of $10.46 billion (GBP 7.59 billion).

The major shareholders and investors include Will Shu, Amazon, Index, DST, Greenoaks, T. Rowe, Fidelity, Bridgepoint and Accel.

Goldman and JPMorgan are the joint global coordinators and Bank of America, Citigroup, Jefferies and Numis Securities are the joint book runners.

With the IPO, founder and CEO Will Shu will have majority voting rights of more than 50% for 3 years.  This is also the largest IPO in UK since e-commerce THG (The Hut Group) listing, which raised GBP 1.88 billion in 2020.

GBP to USD exchange rate ~ 1 GBP = USD 1.38

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