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Summary
- Deliveroo Holdings Plc shares dropped as much as 31% post launch on the London Stock Exchange.
- The Food delivery company has raised £1.5 billion in its initial public offering.
- Standard Life Aberdeen and Aviva dropped their plan to invest in the food delivery company over concerns of workers’ rights.
Food delivery company Deliveroo Holdings Plc (LON:ROO) raised £1.5 billion in its initial public offering (IPO), but its shares dropped as much as 31 per cent following its launch on the London Stock Exchange. It was trading at GBX 308.80 on 31 March at 09:09 GMT+1, after opening at GBX 331. Deliveroo’s stock price was sharply lower from its IPO price of 390 pence each share.
Its IPO has been marred in controversies. Standard Life Aberdeen Plc (LON: ADIG) and Aviva Plc (LON: AV) dropped their plan to invest in the IPO. It was reported that the two biggest institutional investors did not invest in the food delivery company over concerns of workers’ rights.
Also read: Trustpilot Valuation Comes At £1.1 Billion; Three Other Big IPOs In Queue
The tanking of its shares on the first day of the launch casts doubts over London’s efforts to position itself as the hub for listings of technology companies post Brexit. It was touted as the UK’s biggest IPO since the September £1.88 billion-listing of THG Plc.
Also read: Food Delivery: Which Company Is Winning The War?
Lockdown and restrictions boosted sales of food delivery companies. Orders through Deliveroo grew 64 per cent last year, but it could not translate into full-year profits yet. The company’s adjusted loss for 2020 was £11.8 million, as compared to £226.9 million loss a year ago.
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Deliveroo’s IPO has renewed investors’ interests in the major IPOs this year and here are three IPOs to keep investors glued this Easter:
PensionBee
The company, which helps people to consolidate all their pension earnings in one place, announced on Tuesday that it would be listing its share on the London Stock Exchange in April.
It said that the IPO will include new shares by the company and would be raising gross proceeds worth £55 million. It also announced that existing shares worth up to £5 million would be sold by some existing minority shareholders. Its directors, founders, or members from the senior management would not be selling their shares, the company said.
The final offer price would be fixed after a book-building process.
EG Group
The company, which operates more than 6,000 petrol forecourts throughout Europe, Australia, and the US, is reportedly aiming for more than £10 billion-valuation in its capital market debut. The company runs petrol forecourts under brands like Shell, Texaco, Esso, and BP.
Despite the pandemic wreaking havoc on travel and impacting business performances, the EG Group managed a good show. Its revenue was down only 2.8 per cent in the third quarter of last year. It also saw its earnings increase by a record 90 per cent to attain a new quarterly high.
According to reports, the company is eyeing a UK or US listing.
BrewDog
The Scottish brewing company has since 2009 been selling equity in its company through a crowdfunding model. The company has been valued at £2 billion currently and has raised more than £250 million. They have a global network of 75,000 Equity Punk investors.
The company is preferably aiming for a London IPO. Though the pandemic has hurt the hospitality business the most, but BrewDog is expecting to benefit once the restrictions ease, and it has also been able to benefit from its online and wholesale channels during the pandemic.
