As per the latest report, Deliveroo has revealed that it is planning to launch its initial public offering (IPO). Deliveroo is a popular food company in Britain and is currently planning to launch its IPO in London. According to reports, Deliveroo is aiming to generate a total of £8.8 billion in valuation through the IPO. At the time of publishing, the £8.8 billion figure translates to $12 billion.
It has been revealed that Deliveroo is a food delivery company that is backed by the largest e-commerce giant “Amazon”. The sources have also confirmed the price range that Deliveroo is going to set for its shares through the London stock exchange. The price range for the Deliveroo shares will be set between £3.90 and £4.60 per share.
As a result of the above, the food delivery company is hoping that the IPO will be able to bring £8.8 billion in market capitalization to the table.
So far, the listing of Deliveroo in the UK stock markets will be the largest that the UK markets have produced in several years. It was at the beginning of March when Deliveroo had first hinted that it was planning to go for its initial public offering (IPO) at the UK stock market.
The announcement came as a huge victory for the United Kingdom capital as it was being expected that after the Brexit initiation, the majority of the tech-based businesses would go to the European markets.
However, the recent listing of the Deliveroo platform on the public markets is proof that the United Kingdom is also gaining positively by going with the decision of Brexit.
It was recently highlighted by the government of the United Kingdom that the listing regime for the London stocks needed a lot of reforms. This point was raised by the government of the United Kingdom after the Brexit deal had come into effect.
The government urged the London listing process to be flexible so companies from the United Kingdom can also practice dual-class share listings. At present, the companies that are practicing dual-class share listings include tech giants such as Facebook and Google.
The government stated that the London stock market’s premium segment currently restricts companies in the UK to do this. This is the reason why companies are unable to get themselves listed in the FTSE 100.
It has been revealed that Deliveroo has opted for a dual-class shares structure. As a result of this move, Will Shu, who is the founder and CEO at Deliveroo will have access to enhanced voting rights. Doing so will allow Shu to have 20 votes per share while other shareholders will have only 1 vote per share.
It is being speculated that Deliveroo is expecting that the IPO will help it generate £1 billion in gross proceeds.