Amazon-backed Deliveroo seeks valuation of up to $12 billion in its London IPO
Summary
Currently, firms are unable to do so on the premium segment of Londons stock market, which prevents them from being eligible for inclusion in benchmarks like the FTSE 100. Deliveroo has opted for a dual-class share structure that gives CEO and founder Will Shu enhanced voting rights. Deliveroo says it will use the IPO proceeds to enhance its platform and push deeper into on-demand grocery deliveries, which have benefited heavily from the coronavirus pandemic. In a trading update Monday, Deliveroo said the total value of transactions it processes more than doubled in the first two months of the year, getting a boost from the U.K.s coronavirus lockdown. Deliveroo went from near failure in 2020 amid a competition review into Amazons minority investment in the firm, to operating profitability toward the end of the year thanks to the pandemic-driven surge in demand for online takeout apps.