The Strategist

UK food delivery service Deliveroo cuts its valuation by nearly £1B

03/30/2021 - 06:47

British food delivery service Deliveroo, which intends to conduct an initial public offering on the London Stock Exchange in the first half of the year, has revised its offering price range.

Albert Bridge
Albert Bridge
According to the Financial Times, Deliveroo will reduce its price range from £3.9-4.6 per share to £3.9-4.1 per share. Thus, the company's maximum valuation will drop from £8.8bn to £7.9bn.

Deliveroo explained the decision by the turbulent market conditions and does not attribute it to the fact that last week several large Deliveroo investors, including Aberdeen, Standard Aviva and Legal & General, said they would not participate in the offering. 

The reason for this was investor dissatisfaction with working conditions at Deliveroo, labour organisation and a number of other points. A final decision on the price range for the flotation, which could be the largest IPO for London in 10 years, will be announced on Wednesday.

At the beginning of March, William Shu, founder and CEO of UK food delivery service Deliveroo, announced that he would distribute 50 million shares in the company to users of the service.

At the end of 2020, leading US food delivery service DoorDash held an IPO, raising its market capitalisation to $71.3bn.


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