Deliveroo Picks London for its High Profile IPO
Surging Demand for Food Delivery
Yesterday, Deliveroo announced plans to list its shares in London. The UK-based food delivery company’s IPO is expected to take place later this year.
After almost failing in early 2020, Deliveroo has seen demand for its services surge during the pandemic. Its flagship restaurant food delivery service has seen significant growth, and the company also expanded into grocery delivery and cloud kitchens.
Welcome News for London
Deliveroo has not yet shared pricing information for its IPO. It was recently valued at $7 billion after a $180 million funding round. Amazon (AMZN) has invested in Deliveroo, as have Durable Capital Partners, Fidelity, and T. Rowe Price.
Deliveroo’s decision to list in London is welcome news for the city as it works to attract more growing tech companies to its exchanges post-Brexit. Last month, Amsterdam pulled ahead of London to become the largest share trading capital in Europe. London is now looking for ways to stay competitive with New York, Amsterdam, and other financial hubs.
Changes for the London Stock Market
A government-commissioned review of London’s stock market rules was published earlier this week. It called for allowing dual-class listings and relaxing requirements for SPACs, among other measures. Deliveroo plans to list with a dual-class share structure.
A number of other tech companies, like the fintech firm Wise or cybersecurity provider Darktrace, are reportedly exploring IPOs in London. Earlier this week Trustpilot, the Danish customer reviews platform, announced that it was also considering a London listing. Investors around the world will be watching to see what Deliveroo’s performance could mean for the future of London exchanges.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.