Deliveroo eyes $12 billion market cap in upcoming London IPO

FILE PHOTO: A Deliveroo delivery rider cycles in London, Britain, March 8, 2021. REUTERS/Toby Melville/File Photo

LONDON (Reuters) – Deliveroo said on Monday that its upcoming initial public offering (IPO) in London will value the company at up to 8.8 billion pounds ($12.19 billion).

The Amazon-backed food delivery company is set to be Britain’s biggest share listing in more than seven years and has been held up by the UK government as a sign the City of London can still attract major IPOs following Britain’s exit from the European Union.

Deliveroo said it had set a price range for its listing of between 3.90 and 4.60 pounds per share which will give it a market value of between 7.6 billion and 8.8 billion pounds, excluding any shares offered as part of an over-allotment issue.

In a short trading update, Deliveroo added that the total gross transaction value on its platform – which measures the total value of orders it receives – was up 121% in January and February this year compared to the same period in 2020.

“We have seen a strong start to 2021 and we are only at the start of an exciting journey in a large, fast-growing online food delivery market, with a huge opportunity ahead,” Deliveroo’s founder and chief executive Will Shu said in a statement.

The listing will see several existing shareholders sell down parts of their stakes, as well as the sale of around 1 billion pounds of new shares.

($1 = 0.7218 pounds)

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