London boost as Deliveroo chooses LSE for IPO
Delivering for investors: the company has chosen London to float its shares
Food delivery firm Deliveroo has confirmed it will list its shares on the London Stock Exchange.
The long-awaited IPO, expected to value the company at between £5bn and £7bn, will be a dual-class share structure in what is expected to be the largest float in London this year.
Its intention to float in London will be considered an endorsement of the city after the movement of some capital to other European bourses.
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Deliveroo said it has supported 47,000 jobs in the UK since its launch in 2013 and has “ambitious plans” which include the expansion of its Editions delivery-only kitchens as well as extending its subscription service.
At the estimated upper range of its forecast valuation the IPO could trigger a windfall of £500m for Deliveroo boss Will Shu, a former investment banker who set the company up eight years ago and holds a 6.9% stake.
It would also be a big pay day for Amazon whose 16.2% stake is potentially worth more than £1bn.
Announcing the plan, 41-year-old Mr Shu said: ‘Deliveroo was born in London. This is where I founded the company and delivered our first order.
“London is a great place to live, work, do business and eat. That’s why I’m so proud and excited about a potential listing here.”
Claudia Arney, the chairman, added: “Deliveroo is proud to be a British company, and the selection of London as its home for any future listing reflects Deliveroo’s continued commitment to the UK.
“London is not just where Deliveroo was born, it is one of the leading capital markets in the world, with an incredible technology ecosystem, sophisticated investment community and a skilled talent pool.”