Amazon-Backed Deliveroo IPO Set For London Stock Exchange (cnbc.com) 23
"Deliveroo is set to begin one of the largest IPOs on the London Stock Exchange in a decade," writes fermion. "It has reduced its valuation in response to customer complaints." CNBC reports: The Amazon-backed company announced Monday that it will now sell shares for 3.90 pounds ($5.40) to 4.10 pounds each instead of 3.90 pounds to 4.60 pounds each. As a result, Deliveroo's market cap will be between 7.6 billion pounds and 7.8 billion pounds, instead of between 7.6 billion pounds and 8.8 billion pounds.
Deliveroo said it's reacting to market conditions, which have taken a turn for the worse in the last week. Half of the tech IPOs in the U.S., and in Europe, the Middle East, and Africa, priced in the bottom third of their announced ranges last week. However, the new share price range announcement also comes amid an investor revolt. Several large investors said they plan to shun the Deliveroo IPO on April 7 over workers' rights and the company's share ownership structure, which gives CEO Will Shu over 50% of the voting rights.
Deliveroo rebuffs accusations it does not treat its riders properly and says that its platform gives them the flexibility to work when they want, as do rivals like Just Eat and UberEats. Deliveroo insisted that the share price reduction had nothing to do with the investor backlash and the union action, insisting it is purely down to market conditions. It pointed out that four out of six U.S. tech IPOs priced last week are below offer price. They added that Deliveroo has seen strong demand from investors worldwide but declined to specify which ones.
Deliveroo said it's reacting to market conditions, which have taken a turn for the worse in the last week. Half of the tech IPOs in the U.S., and in Europe, the Middle East, and Africa, priced in the bottom third of their announced ranges last week. However, the new share price range announcement also comes amid an investor revolt. Several large investors said they plan to shun the Deliveroo IPO on April 7 over workers' rights and the company's share ownership structure, which gives CEO Will Shu over 50% of the voting rights.
Deliveroo rebuffs accusations it does not treat its riders properly and says that its platform gives them the flexibility to work when they want, as do rivals like Just Eat and UberEats. Deliveroo insisted that the share price reduction had nothing to do with the investor backlash and the union action, insisting it is purely down to market conditions. It pointed out that four out of six U.S. tech IPOs priced last week are below offer price. They added that Deliveroo has seen strong demand from investors worldwide but declined to specify which ones.
why sell per pound? (Score:2)
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Probably not great (Score:2)
You have to ask why not IPO on NASDAQ or NYSE?
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Did you read the comment ? Deliveroo operates in Europe not the US. There is zero point in listing in the US
Re:Probably not great (Score:4, Informative)
The main point of listing in the US is sloppy regulations and easier access to US venture capitalist money. However, you do need to comply with some US regulations like having a US-resident CFO. It's probably not worth the trouble for Deliveroo.
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The main point of listing in the US is sloppy regulations and easier access to US venture capitalist money.
This only makes sense the bulk of operations would occur in the US, or when there are plans to enter the US market. Otherwise, it makes no sense. There's a reason why most companies on the planet (and the US is not the largest market, the EU is) prefer to list themselves in London, Tokyo or Hong Kong, depending on where they reside or operate.
Some of these posters on slashdot who think it is dumb not to list in a US exchange, my God, how ignorant, I don't know whether to laugh or cry.
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It makes sense to IPO in the biggest market. And that's the U.S.
Biggest market for what?
People served by Deliveroo in the USA: 0
People served by Deliveroo in Europe: 295 million, 67million in the UK alone.
Potential customers to serve in the USA: 328 million
Potential customers to serve in the Europe: 746 million.
Surface area of USA: 9.8 million sqkm
Surface area of Europe: 10.18 million sqkm.
Oooooh I get it now:
Average weight of USA Adult: 178lbs
Average weight of European Adult: 156lbs.
Makes sense now. The "biggest" market. Gotchya ;-)
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People served by Deliveroo in the USA: 0 People served by Deliveroo in Europe: 295 million, 67million in the UK alone.
This source [techcrunch.com] says Deliveroo has 6 million customers in 12 markets. Where do your numbers come from?
Average weight of USA Adult: 178lbs Average weight of European Adult: 156lbs.
The average weight of an adult in the UK, where it appears the vast majority of Derliveroo's customers reside, is 173lbs. [digital.nhs.uk]
Given that Deliveroo's top delivered items are mostly cheeseburgers and burritos, [deliveroo.news] and that they lose money on every delivery, I can see why they might want to avoid operating in the US market.
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You have to ask why not IPO on NASDAQ or NYSE?
Dude, really, are we so illiterate that we don't know the London Exchange is one of the largest on the planet, serving Europe (which has a combined wealth larger than the US)?
Why on Earth would a European company list itself on an American exchange? European companies list themselves in Europe. APAC companies list themselves in Tokyo or Hong Kong, etc.
Not everyone gives a crap about (or needs) being next to GI Joe, you know.
How do you know a big corp is lying? (Score:2)
I guess I really don't need to provide the answer to that, now do I...
Deliveroo (Score:2)
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'roo (Score:2)
"Deliveroo rebuffs accusations it does not treat its riders properly"
Riders? What do they ride? Large Australian marsupials?
Or maybe thats what they deliver:
"tonight I will be eating - Roo burgers"
Lonely girl looking for (Score:1)
Bullcrap... but then again... (Score:2)
"Deliveroo rebuffs accusations it does not treat its riders properly and says that its platform gives them the flexibility to work when they want, as do rivals like Just Eat and UberEats."
This is the same rhetoric heard from the competition. The odd thing is that it makes sense to hitchhike on it. Everybody knows they're lying. For the purposes of the IPO, that's important. If people though they were going to treat their delivery people well and give them a living wage, nobody would buy the stock. Under tho
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No, the concern is that it represents a regulatory risk, especially after the Über judgment in the English Supreme Court.