Amazon-backed Deliveroo set for London IPO with Dual-Class Structure

Follow us on Google News:
 Amazon-backed Deliveroo set for London IPO with Dual-Class Structure

Source: zaozaa19,Shutterstock  

Summary

  • Deliveroo, a British food delivery firm, is set to launch its IPO, expected to be London's biggest listing in several years.
  • The plan follows strong business traction during 2020.
  • The company was valued at more than USD 7 billion in its January 2021 funding round.

Amazon-backed British food delivery firm, Deliveroo has unveiled its plans to go public. The IPO could be one of the biggest listings on the London Stock Exchange (LSE) in many years. In a funding round closed early this year, the company was valued at over USD 7 billion.

The company made the decision after experiencing a surge in business during the pandemic period.

Image source: © Stavklem | Megapixl.com

The closure of restaurants and lockdown restrictions resulted in strong demand for food takeaway and delivery services. Deliveroo Founder and CEO Will Shu expects the trend to continue post the pandemic period.

Mr Will Shu has highlighted that the business is so much bigger than what he expected in the beginning. The company is building tools for restaurants to make them relevant during the digital age, while also delivering groceries and working on delivery-only kitchens.

Do Watch: The global IPO market amid COVID-19 and how did the Australian IPO market flare during the pandemic?

IPO Details

Reportedly, J.P. Morgan Securities plc and Goldman Sachs International have been roped in as Joint Global Coordinators. Meanwhile, the Joint Bookrunners are Citigroup Global Markets Limited, Merrill Lynch International, Jefferies International Limited, and Numis Securities Limited.

The IPO filing mentions details on the company's dual-class share structure, comprising Class A Shares and Class B Shares. Mr Will Shu, who is the only holder of the Class B Shares, is likely to receive 20 votes per share held, whereas other shareholders will only be entitled to one vote per share. This clearly gives Mr Shu more voting rights and control over the company's directions.

The date for IPO is not announced yet, but it is expected in the next few weeks.

Financial Highlights for 2020

Deliveroo serves millions of consumers in 12 markets, globally. The business model gained strong traction during the lockdown period. The company implemented new technology to make sure restaurants could send food to customers safely during the crisis.

Here are the key financial highlights of the business for the year 2020:

  • Gross Transaction Value, which means the total amount of transaction, stood at GBP 4.1 billion in 2020 as compared to GBP 2.5 billion in the previous year, an increase of 64.3%.
  • Underlying gross profit surged by 89.5%, from GBP 188.7 million to GBP 357.5 million.
  • Underlying adjusted EBITDA was (GBP 9.6 million) and underlying loss stood at GBP 223.7 million.

The company intends to become a market leader in the online food space. It connects restaurants, grocery partners, delivery riders and consumers. The company is currently working with more than 115,000 restaurants, grocery stores and takeaways and giving employment to more than 100,000 riders.

Must Watch: How To launch an IPO?

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK