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Deliveroo confirmed it would use a dual-class share structure to give its founder Will Shu more control. Goldman Sachs and JPMorgan will be global coordinators for the IPO.
Deliveroo, an online food delivery company backed by Amazon.com Inc (NASDAQ: AMZN), is preparing to conduct an Initial Public Offering (IPO) and list on the London Stock Exchange (LSE). Notably, the offering that will launch in the next few weeks, could be the biggest London listing in more than seven years. It would value Deliveroo at more than $10 billion, based on a $180 million private funding round that took place in January. At that time, the key investors included Amazon, the world’s most valuable company.
Deliveroo IPO: Details
The exact date for Deliveroo IPO is not yet known. The company has also not disclosed how much it is planning to raise. However, the company confirmed it would use a dual-class share structure to give its founder Will Shu more control. In other words, Deliveroo will have a “standard” listing upon entry into the London Stock Exchange, rather than a premium one, excluding it from the FTSE indices.
The listing will closely align with the recommendations set out within the Lord Hill Review. The structure will be valid for three years, after which the company will move to a traditional single share class structure.
Former EU Commissioner Jonathan Hill said:
“It’s obviously great news that Deliveroo, a global technology leader, born and bred in the UK, has chosen to list here. The changes we recommended would make it easier for more companies to follow Deliveroo’s lead, sending out a message that London is open for business.”
Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM) will be global coordinators for the IPO.
Deliveroo has operations in over 500 towns and cities across 14 markets. Its geography covers Australia, Belgium, France, Germany, Hong Kong, Italy, Ireland, Netherlands, Singapore, Spain, Taiwan, the UAE, Kuwait, and the UK. Apart from Amazon, Deliveroo is also backed by General Catalyst, Fidelity, Durable Capital Partners, T. Rowe Price, Accel, and Index Ventures.
In January this year, Deliveroo ran a Series H funding round. There, it raised $180 million and got a $7 billion valuation. The funding round was led by Durable Capital Partners LP, Fidelity Management & Research Company LLC.
Deliveroo’s Losses in 2020
Last year, during the pandemic, Deliveroo surged, its revenues climbed to £4.1 billion, up from £2.5 billion in 2019. As the company explained, it saw an increase in demand from restaurants seeking to use the platform. Takeaway demand surged as well, making its transactions rocket by 64%.
Deliveroo founder and CEO Will Shu said:
“Today, Deliveroo is so much bigger than I ever would have thought possible. We are building delivery-only kitchens, delivering groceries, building tools for restaurants to take them into the digital age – things I never contemplated when we launched.”
However, Deliveroo’s losses for 2020 also were big. Last year, Deliveroo posted losses of £223.7 million (or $308.93 million).