Deliveroo set to raise £1bn with City float: Food delivery giant’s founder Will Shu set for £430m windfall
Deliveroo has revealed plans to raise £1billion with a listing on the stock market in London.
The food delivery company said the initial public offering (IPO) will involve issuing new shares and the sale of existing ones.
Deliveroo’s formal valuation will not be clear until it sets a price for the shares. However, it is thought the deal will value it at between £5billion and £7billion.
£1bn listing: Deliveroo said the initial public offering will involve issuing new shares and the sale of existing ones
Customers will be able to take part and buy shares.
The float will bag founder Will Shu a windfall of as much as £430million for his 6.2 per cent stake, while other staff members with stock options are also expected to become millionaires overnight.
Among them is executive Thea Rogers, girlfriend of former chancellor George Osborne, whose stake is reported to be worth £40million – although Deliveroo has denied it is that much.
Under the proposed listing, Deliveroo’s shares will have two classes. Shu will have so-called Class B shares that carry 20 votes per share versus the one each carried by normal Class A shares.
But the company has said the dual structure – used by many tech firms in the US to preserve the control of their founders – will only be in place for three years.
Earlier this month, the firm posted losses of £223.7million for 2020, despite surging sales amid lockdown restrictions.
Transactions, however, rocketed by 64 per cent to £4.1billion in 2020 as the pandemic helped to spark increased takeaway demand, said a spokesman.