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.
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