Deliveroo announces £ 7bn blockbuster London Float: food delivery giant chooses Britain over New York, Asia, or Europe to boost cities
Deliveroo has launched a starting pistol on London’s blockbuster £ 7 billion stock market float.
As a big boost to the city, food delivery companies have confirmed that they will list their shares in the UK instead of New York, Asia and Europe.
With this decision, London has become one of the largest floats in recent years, with Deliveroo estimated to be worth between £ 5b and over £ 7bn.
For the most part: Deliveroo’s float could cause a £ 500m plunge to boss Will Shu, who founded the company eight years ago and holds a 6.9% stake.
The deal could cause a £ 500m plunge to Will Shu, the boss of Deliveroo, who founded the company eight years ago and holds a 6.9% stake.
The email revealed that the company was set to choose London over Wall Street and Hong Kong in January.
But confirmation was only yesterday – 24 hours after Prime Minister Rishi Sunak threw his weight behind plans to overhaul listing rules to help London attract faster-growing tech companies.
Shu, 41, who announced the plan, said: ‘Deliveroo was born in London. This is where I founded the company and delivered my first order.
“London is a great place to live, work, do business and eat. That’s why I’m so proud and excited to be listed here.”
Claudia Arney, chairman of the company, added: ‘Deliveroo is proud to be a UK company and its choice of London as its future listing base reflects Deliveroo’s continued commitment to the UK.
“London is not only the birthplace of Deliveroo, but also one of the world’s leading capital markets with an incredible technology ecosystem, a sophisticated investment community and a skilled talent pool.”
The blockade forced restaurants to close, and the pandemic caused a surge in demand for food delivery services.
The US company DoorDash was valued at over £ 40bn when it went public in New York in December, and Just Eat Takeout was valued at £ 10bn at the FTSE 100. Deliveroo’s decision to go public in London partially reflects the fact that the UK is the largest market. We are in fierce competition with Just Eat and Uber.
However, it is understood that discussions with the government on the plan also influenced the outcome.
For the first three years after the float, Deliveroo has proposed a dual-class equity structure that gives Shu and other equity managers a solid grasp of the company.
This proposal is very similar to the one recommended in this week’s main review of list rules by Roadhill.
Hill, a former EU commissioner asked by Sunak to create a blueprint to attract fast-growing tech companies to the London Stock Exchange, said: The message that London is open.
Sunak welcomed Deliveroo’s announcement and said:
“That’s why we’re looking at reforms to encourage even faster, more dynamic companies to go public in the UK.”
Founded in 2013 by former investment banker Shu, Deliveroo is now affiliated with approximately 140,000 restaurants worldwide.
He emerged as one of the winners of the blockade because a family member who couldn’t go out left him to take it home.
Other investors that can be cashed out of the float include Amazon, which invested last year, owns a 16.2% stake and is potentially worth more than £ 1 billion.
Deliveroo unveils £ 7bn blockbuster London float
Source link Deliveroo unveils £ 7bn blockbuster London float