Just-Eat cooks up a tasty price range for its London share issue
JUST-EAT, the online takeaway food group, is chasing a valuation of between £1.2bn and £1.47bn, it emerged yesterday.
The group, whose management team begins a road-show today mainly in New York and London, decided to plump for a higher than expected valuation after testing out demand with institutional investors over the past few days.
At the higher end, the valuation values the group at around 100 times earnings. The group reported revenues of £96.8m in 2013, up 60 per cent from the previous year.
Bankers on the deal compared the business to that of Grub Hub, which is targeting a share listing in the US, which would value it at $1.72bn against revenues of $137m.
There is no independent research on the stock, and those advising on the deal are bullish on the group’s ability to grow extremely quickly. The group intends to raise £100m of new money while existing shareholders sell down partially.
THE THREE KEY NUMBERS FROM JUST-EAT’S SHARE ISSUE
£1.47bn
How much Just-Eat would be worth at the top of its 210p to 260p per share range
40,171,000
Orders made on Just-Eat’s sites last year, generating an average of £2.11 each in commission
18,000
Web addresses owned by Just-Eat, giving it plenty of space to expand worldwide