Deliverook fell 30% at its London premiere
Deliveroo’s shares fell 30 per cent on Wednesday at the company’s London premiere, against plans to attract more British tech companies to the UK.
According to Refinitiv data, the shares fell to 271p in the first 20 minutes of trading. At 8:45 a.m., the stock price rose to 313 p.m.
The company set its initial share price at 390p on Tuesday, citing dirty market conditions and a backlash from big British investors to corporate governance.
According to Dealogic data, the initial public offering gave Deliverio a valuation of around £ 7.6 billion, the highest in London from Glencore’s 2011 IPO resource group.
But the food delivery app marketed more than £ 2bn in the first few moments as a public company, in one of the most significant declines in recent years.
As of Tuesday, Deliverook stressed that investors saw a “very significant demand” and that the deal was covered “more than once,” even though reduce its price range at the beginning of the week.
Deliverook sold 1.5 billion shares in the offering, and grossed $ 1 billion to invest in new business growth initiatives such as the Editions delivery kitchen network, where existing investors will earn 500 million euros.
However, retail investors who were allocated a stock of 50 million euros in the IPO marketed in the Deliveroo app will not be able to trade until next Wednesday until unconditional trading begins.
At a time when other European companies wanted to make it public in New York or Amsterdam, Deliveroo’s IPO has been hailed as a test case for a Silicon Valley-style tech company in London. The Hut Group online retailer has since made big profits The September IPO raised 1.9 billion euros, The internet ratings service Trustpilot has struggled to gain strength after its launch last week.
Deliveroo, founded in 2013, He has lost £ 224 million last year, however, revenues fell 54 percent as demand for transport was accelerated by the blockade of the pandemic across Europe.
“I am very proud to have Deliveroo in London – our home – for the public,” said CEO Will Shu. “Our goal is to definitely build an online food business and we are very excited about the future.”
Shu has excessive voting power in the stock market thanks to its dual-class share structure, which is common among Silicon Valley companies such as Google and Facebook, but rare among UK listings. The arrangement will prevent Deliveroo from joining the FTSE 100 for the time being, but UK Chancellor Rishi Suna has proposed claims that will allow companies with double-class shares to enter the premium segment.
Several investors in major UK asset managers, including the fund management companies Legal & General, Aviva and Aberdeen Standard, decided not to participate in the IPO, combining regulatory risk and corporate governance concerns, especially a dual-class structure.
Amazon, the largest investor in Deliveroo, sold about £ 91 million worth of shares in the IPO, while Shuk charged around £ 26 million.
Initial investors ’Index Ventures, DST Global, Accel, Greenoaks, Bridgepoint and General Catalyst sold about 10 percent of their bets on the IPO. Two of Deliveroo’s biggest private sponsors, T Rowe Price and Fidelity, have yet to sell.
Investors in Deliveroo’s previous IPO have been barred from selling more shares for up to 180 days, according to the lockout rules.
Goldman Sachs and JPMorgan are joint global coordinators of Deliveroo, and served as book-runners for Bank of America, Citigroup, Jefferies and Numis.