Deliveroo lowers London float price to bottom of target range

Henry Saker-Clark, PA City Reporter
·2-min read

Deliveroo has said it will price shares for its highly anticipated stock market listing towards the bottom of its price range due to “volatile” market conditions.

It comes after a week in which a raft of leading fund managers said they will reject the listing – which could be the UK’s biggest for a decade – amid concerns over workers’ rights.

The takeaway delivery firm is set to announce its final pricing on Wednesday morning but has narrowed its share price range to between £3.90 and £4.10 per share.

Last week, the company said it intended to offer a range of between £3.90 and £4.60 per share, which could have potentially valued the business up to £8.8 billion.

It said it now expects it will be valued at between £7.6 billion and £7.85 billion.

The decision to offer towards the end of its price range comes after a number of US tech stocks fell below their issue prices after initial public offerings (IPOs) in recent weeks.

A Deliveroo spokesman said: “Deliveroo has received very significant demand from institutions across the globe.

“The deal is covered multiple times throughout the range, led by three highly respected anchor investors.

“Given volatile global market conditions for IPOs, Deliveroo is choosing to price responsibly within the initial range and at an entry point that maximises long-term value for our new institutional and retail investors.”

Last week, some of the UK’s largest fund managers, including Legal & General and Aviva, said they would reject the flotation, highlighting issues related to its business model, workers’ rights and regulatory concerns.

Firms have also raised concerns over share structure, which will see founder Will Shu have 20 votes per share, compared with one per share for other investors, giving him a majority position at shareholder votes.