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Will Shu, CEO of Deliveroo.
Aurelien Morissard | IP3 | fake images
LONDON – Deliveroo plans to raise £ 1bn ($ 1.38bn) in its initial public offering next month, when it is expected to debut on the London Stock Exchange.
The food delivery service plans to offer up to 256,456,256 new shares at £ 3.90 to £ 4.60 per share, according to the company’s prospectus, which was released on Tuesday. Existing shareholders also plan to sell up to 128,205,128 shares.
The initial public offering will value the company between £ 7.6bn and £ 8.8bn, which is higher than previous reports had suggested. Even at the lower end of the range, Deliveroo will remain Europe’s largest tech IPO so far this year and Britain’s largest for a decade.
Deliveroo’s IPO is poised to bring the company’s major shareholders into the hundreds of millions. Some of them will unload some shares in the IPO, but investors plan to keep most of them.
The biggest individual winner will be Will Shu, CEO of Deliveroo. After the IPO, it will own 115,227,441 shares, or 6.3% of the share capital. You will also have more than 50% of the voting rights. Assuming Deliveroo’s prices are £ 4.25 a share, the midpoint of the range, Shu’s stake will be worth around £ 490 million. However, it could go as high as £ 530 million if the price is at the upper end of the range.
Overall, Amazon will benefit the most from the IPO. The tech giant will have an 11.5% stake (209,720,160 shares) in Deliveroo after the IPO which will be worth around £ 1bn depending on price. It is currently 15.8%, but plans to sell 23,302,240 shares for between £ 90.8 million and £ 107.2 million, depending on the price.
Meanwhile, Index Ventures, which has also backed Facebook and Slack, will take a 7.5% stake of around £ 577 million if it trades in the mid-range, while DST Global, which has also backed fintech Checkout. from the United Kingdom, it will take a 7.4% stake worth 569 million pounds. Both firms plan to sell around 15 million shares for approximately £ 60 million.
Other venture capitalists who are going to win big include Greenoaks, T. Rowe and Fidelity, who will also have stakes of around £ 450 million to £ 500 million each. Meanwhile, Bridgepoint and Accel will hold holdings of around £ 300 million if prices are in the mid-range.
Deliveroo’s listing will take place on April 7. The ticker is currently unknown, but options include “ROO” and “DROO”.
The company’s prospectus shows that Deliveroo’s revenue increased 54% in 2020, while gross margin increased from 24% to 30%. However, Deliveroo still posted an annual loss of £ 224 million.
It comes after American rival DoorDash was valued at $ 60 billion in an IPO on the New York Stock Exchange in December. Meanwhile, Grubhub was valued at just $ 5 billion when it went public in 2016.
