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Businesses The Almighty Buck Technology

Amazon-Backed Deliveroo IPO Set For London Stock Exchange (cnbc.com) 23

Posted by BeauHD from the slight-change-of-plans dept.
"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.
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Amazon-Backed Deliveroo IPO Set For London Stock Exchange More

Amazon-Backed Deliveroo IPO Set For London Stock Exchange

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  • don't get why use pounds? can we use elbows or at least football fields?

  • You have to ask why not IPO on NASDAQ or NYSE?

    • Deliveroo is 99% in Europe, and is HQ'd in London. It makes sense to IPO in the markets in which they are mainly known. Just like a large percentage of people in the US have heard of Postmates, a large percentage of UK/EU consumers have heard of Deliveroo.

    • 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.

  • I guess I really don't need to provide the answer to that, now do I...

  • Is it too much to ask that explain wtf Deliveroo is? Just a couple of words would be enough I assume.
    • Postmates for the UK/EU.
  • Lonely girl looking for a partner for the entertainment! Only men 18 years older. I am waiting for you. ==>> https://lst.to/xo2ck [lst.to]

  • "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

    • No, the concern is that it represents a regulatory risk, especially after the Über judgment in the English Supreme Court.

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