Deliveroo IPO: what is the company valued at ahead of its flotation?
The Deliveroo IPO is one of the most anticipated debuts on the London Stock Exchange in a decade. Discover its estimated share price range and market cap along with a 2021 trading update ahead of its journey as a public company.
- Biggest LSE float since THG in September 2020
- Deliveroo IPO float date thought to be 30 March 2021
- Price range set between £3.90 and £4.60 per share
- Deliveroo trading update for early 2021 revealed
Deliveroo IPO: the most significant LSE float in 2021
Food delivery start-up giant Deliveroo is expected to launch its initial public offering (IPO) on the London Stock Exchange (LSE) at the end of the month, with its market debut one of the most eagerly anticipated in almost a decade.
Not since Glencore (GLCNF.PK) went public in 2011 has an IPO been so anticipated. It will also be the most significant float on the LSE since The Hut Group (THG) went public in September 2020. Deliveroo’s decision to go public in London is a major boost for the LSE, which aims to entice more high-growth tech firms to the English capital.
For Deliveroo, it simply makes sense, having started its journey as a takeaway delivery service in London. The company will take investor orders until 30 March 2021, and successful applicants will be informed of their allocations on or around 31 March 2021. The stock is due to start trading on 7 April 2021.
Learn more about how you can take a position on Deliveroo shares with us or find out more about IPO subscriptions.
Deliveroo share price range published ahead of IPO
Ahead of its IPO, food delivery start-up giant Deliveroo has revealed it will be selling shares valued between £3.90 and £4.60 apiece. In a statement published on Monday, its share offer will consist of 384,615,384 shares – excluding any over-allotment shares. Its price range implies that the estimated market cap will be anywhere between £7.6 billion and £8.8 billion at admission.
Founder, Will Shu, will retain a 6.3% stake in the company at IPO, which will be worth approximately £550 million. Its existing shareholders, including Amazon (AMZN.O) and Private Equity Lenders Index, Greenoak, and Bridgepoint, will sell shares to the value of £536 million, as published within the group’s prospectus this week. Deliveroo and company shareholders have agreed on a 180-day lock-up, with directors agreeing to a year-long lock-up.
The company has also ring-fenced £50 million worth of shares to be offered to loyal customers, with the offering now heavily promoted within its mobile app.
Its new share offering is hoped to raise gross proceeds totalling £1 billion, which will be invested in multiple growth opportunity areas. These include branching out into additional 'meal occasions in a week', most notably breakfast and lunchtimes. It will also invest in innovations to 'enhance its core marketplace' for consumers, restauranteurs, grocers, and riders alike.
Deliveroo fundamentals strengthened by trading update
The company also issued a trading update for January and February 2021, providing year-on-year (YoY) comparisons for growth. The figures underline why the company has been so bullish with its share price valuation, with the total value of transactions more than doubling in the first two months of the year – buoyed by the Covid-19 nationwide lockdown.
Revenue in the UK and Ireland grew by 130% YoY during this period, while markets elsewhere also soared by 112%.
Find out how you can take a position on the Deliveroo IPO before and after the listing
Find out how to trade or invest in Deliveroo shares with us, or learn more about IPOs:
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Get in on the action early
Everything you need to trade a company’s initial public offering (IPO), all in one place.
- Explore IPOs, learn expected valuations and see company profiles
- Speculate on a company’s market cap before its IPO with our grey markets
- Invest with a share dealing account, or trade on price movements with spread bets and CFDs
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.