Online food delivery firm Deliveroo could make the biggest London stock market debut since commodity trading and mining company Glencore went public almost a decade ago.
The Amazon-backed company announced on Monday that it would sell its shares (excluding over-allotment shares) at between £3.90 and £4.60 which will give the food delivery firm a market value of between £7.6 billion ($10.5 billion) and £8.8 billion ($12 billion).
Deliveroo continues to benefit from the upward trend in online food delivery due to the ongoing Coronavirus pandemic. The company said that the total transaction value of its platform was up 121% in January and February 2021, compared to the previous year.
“We are proud to be listing in London, the city where Deliveroo started.’’ said Will Shu, the founder and CEO of Deliveroo. ‘’Becoming a public company will enable us to continue to invest in innovation, developing new tech tools to support restaurants and grocers, providing riders with more work and extending choice for consumers, bringing them the food they love from more restaurants than ever before.’’
‘’This will help us in our mission to 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.”
Deliveroo was founded in 2013 in London by Will Shu and Greg Orlowski. The company is currently active in over 200 towns and cities across the United Kingdom and also in 12 countries in Europe, the Middle East, Asia and Australia.