Deliveroo stumbles to London float with pricing at bottom end
Deliveroo will price its initial public offering at 390p per share, the bottom end of previously touted valuations for the food delivery firm.
The price would indicate a lower-than-expected valuation of £7.6bn, after a string of UK fund managers said they would not take part in the deal.
The fund managers cited concerns about Deliveroo’s dual class share structure and its gig economy business model.
Deliveroo said yesterday that the fall in valuation was due to “volatile market conditions”.
The listing is set to be London’s largest IPO since Glencore’s in May 2011 and the biggest tech float on the London Stock Exchange.
Heavyweight investors Aberdeen Standard Life, Aviva and Legal & General have all said they will sit the deal out amid criticism of workers’ rights.
Premier League footballer Marcus Rashford is set to hold talks with the firm about rising concerns about the way it treats its workers.
Meanwhile, top City investor James Anderson is giving Deliveroo the cold shoulder due to being unconvinced by the platform’s model outside of London.
Deliveroo’s self-employed drivers have seen a boom in demand during the pandemic, bringing food from shuttered restaurants to housebound customers.