Deliveroo set for £7.6b London IPO

[LONDON] Britain's Deliveroo faces a stock market launch that will value the app-driven meals delivery firm at £7.6 billion (S$14.1 billion), a source close to the matter said Tuesday.

Deliveroo's initial public offering due Wednesday will be priced at £3.90 per share, according to the source, giving it a valuation worth the equivalent of US$10.5 billion.

Eight-year-old Deliveroo remains on track for the City's biggest listing in 10 years thanks to pandemic lockdowns boosting sales, despite mounting criticism over its treatment of riders.

The group "has very significant demand from institutions across the globe" for the offer, a Deliveroo spokesman told AFP separately.

Tuesday's news comes one day after Deliveroo had said the IPO was eyed at a range between £7.6 billion and £7.85 billion.

The group has however been forced to trim its IPO valuation due to recent market volatility surrounding the tech sector.

Deliveroo had last week given an IPO market capitalisation of up to £8.8 billion.

The listing is nevertheless seen as a major boost to London's financial sector, known as the City, which lost its European share trading crown to Amsterdam following Brexit.

AFP