Food delivery firm Deliveroo on Monday (22 Mar) announced its initial public offering (IPO) has been set at £3.90 to £4.60 (S$7.20 to S$8.50) per share, implying an estimated market capitalization at between £7.6 billion and £8.8 billion (S$14.05 and S$16.27 billion) – which excludes any overallotment shares.
This would make it one of the biggest IPOs on the London Stock Exchange in years.
London-based Deliveroo, which is 16 per cent owned by online retailer Amazon, aims to raise gross proceeds of approximately £1 billion (S$1.85 billion).
It noted that the offer will comprise of new shares to be issued by Deliveroo, and existing shares to be sold by certain existing shareholders.
Deliveroo’s founder and CEO Will Shu said the listing will help the firm to achieve its mission in becoming the “definitive food company”.
“We are proud to be listing in London, the city where Deliveroo started,” said Shu.
“Becoming a public company will enable us to continue to invest in innovation, developing new tech tools to support restaurants and grocers, providing riders with more work and extending choice for consumers, bringing them the food they love from more restaurants than ever before.”
Deliveroo stated that its gross transaction value (GTV) – the total amount of transactions it processes on its platform – has increased by 121 per cent year-on-year at the Group level in January and February this year.
GTV in the UK and Ireland rose 130 per cent year-on-year, and 112 per cent in other markets in January and February, increased from last year’s growth rate of 64 per cent in GTV.
The company observed that bringing the food category online “represents an enormous market opportunity”.
“The way we think about it is simple: there are 21 meal occasions in a week – breakfast, lunch, and dinner – seven days a week. Right now, less than one of those 21 transactions takes place online. We are working to change that,” it said.
Deliveroo will continue to invest in the innovations that will further enhance its core marketplace for consumers, restaurants and grocers, and riders.
“We have executed well, from a growth, expansion, and profitability perspective, but we are just truly starting our journey,” it noted.