Deliveroo eyes £8.8b market cap in upcoming London IPO

[LONDON] Deliveroo said on Monday that its upcoming initial public offering (IPO) in London will value the company at up to £8.8 billion (S$16.36 billion).

The Amazon-backed food delivery company is set to be Britain's biggest share listing in more than seven years and has been held up by the UK government as a sign the City of London can still attract major IPOs following Britain's exit from the European Union.

Deliveroo said it had set a price range for its listing of between £3.90 and £4.60 per share which will give it a market value of between £7.6 billion and £8.8 billion, excluding any shares offered as part of an over-allotment issue.

In a short trading update, Deliveroo added that the total gross transaction value on its platform - which measures the total value of orders it receives - was up 121 per cent in January and February this year compared to the same period in 2020.

"We have seen a strong start to 2021 and we are only at the start of an exciting journey in a large, fast-growing online food delivery market, with a huge opportunity ahead," Deliveroo's founder and chief executive Will Shu said in a statement.

The listing will see several existing shareholders sell down parts of their stakes, as well as the sale of around £1 billion of new shares.

REUTERS