Deliveroo Reveals Plans For LSE Debut
Food delivery company Deliveroo has unveiled its plans to float on the London Stock Exchange in 2021, following an initial valuation between $7-10bn. With business sky-rocketing during the pandemic both through customers ordering and restaurants listing via the app, the company has committed itself to make the UK it’s long-term home with this listing.
In January, Deliveroo was valued at around $7bn/£5bn, though further investment from Amazon may see its valuation (and ultimately, share price) increase to around $10bn.
Were the shares to be listed at the top end of its price range, it would give London its most valuable share listing in years, beating out SAGE and The Hut Group.
It’s thought that the increase in cash flow to the company would allow it to continue to expand and extend its reach across the UK, as well as increasing it’s global market further – it currently services 12 separate markets across the world.
Deliveroo’s announcement follows a sudden glut of tech firms listing on the London Stock Exchange – most recently, online card delivery service Moonpig which began its float valued at £1.2bn in February 2021.
In a statement given to the press, founder Will Shu said he was delighted the company was making London it’s fixed home for the next few years and hoped the listing would improve services and outreach to the UK.
The announcement comes following Chancellor Rishi Sunak’s new proposed rules on stock market changes, which would see it become more like the US system.
Hoping to directly benefit tech start-ups, the new rules would separate shares into two blocks with varied voting power in each, allowing founders more say in key decisions. It’s being suggested that these rules are the first step to returning London to its position as a global financial hub after the volatility of Brexit and COVID-19.
It was reported in early 2021 that the capital was no longer a financial centre of the world – Amsterdam in Europe and New York, globally, had become more prominent over 2020.
The UK is Deliveroo’s biggest individual market. Their nearest competitor, Just Eat, is currently valued on the FTSE 100 at £10.1bn.