Finance

Deliveroo set for £8bn market cap on IPO as food orders surge

Food delivery has provided a market trading update setting its share price in the £3.90 to £4.60 range, which would provide a valuation of between £7.6bn and £8.8bn.

In its statement on 22 March, the company noted its total value of transactions grew 121% year on year. Deliveroo said its offer will consist of 384,615,384 shares for its London Stock Exchange listing. This includes news shares which Deliveroo expects would raise about £1bn.

The company plans to use the proceeds of fresh capital to invest in new growth areas.

JPMorgan, Bank of America, Citigroup, Jefferies and Numis have been named joint bookrunners on the offer.

“The way we think about it is simple: there are 21 meal occasions in a week – breakfast, lunch, and dinner – seven days a week. Right now, less than one of those 21 transactions takes place online. We are working to change that,” Deliveroo said in its statement.

The offer will also extend to UK-based consumers with an account in a bid to reward loyal customers.

Will Shu, founder and CEO of Deliveroo, said becoming a public company, in the city in which Deliveroo started, would help it become the “definitive” food company.

“We have seen a strong start to 2021 and we are only at the start of an exciting journey in a large, fast-growing online food delivery market, with a huge opportunity ahead,” said Shu.

To contact the author of this story with feedback or news, email Penny Sukhraj

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