Connect with us

Business

Amazon-backed Deliveroo targets $ 12 billion valuation in successful London IPO

Avatar

Published

on


Amazon-backed Deliveroo is expected to be valued at 8.8 billion when the food delivery app starts selling its shares on the London Stock Exchange LSEG,
-0.25%,
in what will be one of the city’s biggest initial public offerings in years.

Deliveroo, 16% owned by online retailer Amazon AMZN,
+ 1.55%,
set a price range for its listing of between 3.90 and 4.60 per share, valuing the company between 7.6 billion and 8.8 billion ($ 12.2 billion), the company said in a declaration Monday.

The sale includes up to 384.6 million shares, excluding shares offered as part of an overuse issue. Of that amount, around 1 billion new shares have been reserved for the company itself, with the remainder going to existing investors who sell shares.

Read: Amazon-backed Deliveroo Prepares To Test A Burning Global IPO Market

Deliveroo plans to invest the proceeds of the IPO to continue its growth, which has skyrocketed during the pandemic as government-imposed lockdowns have closed restaurants. This helped propel San Francisco-based DoorDash DASH,
+ 3.38%
at a valuation of over $ 60 billion when it went public in New York in December.

In a short trade update, Deliveroo said gross transaction value (GTV), which measures the total value of orders received, increased 121% in January and February compared to the same period last year.

We have seen a good start to 2021 and we are only at the beginning of an exciting journey into a large, fast growing online food delivery market, with a huge opportunity ahead, said Will Shu, co-founder and Managing Director of Deliveroo. .

Read: DoorDash shares tumble as revenue more than tripled but loss more than doubled

However, some analysts are starting to question whether food delivery service companies will be able to sustain their rapid growth as COVID-19 vaccinations accelerate and customers start eating out again. DoorDash recently forecast that demand for home-delivered food products will moderate in 2021, with order growth expected to be double digits, rather than three.

While this insatiable demand for take-out is not likely to collapse entirely, there will inevitably be a drop in demand as diners seize the opportunity to reserve tables at their favorite restaurants when restrictions ease. said Susannah Streeter, senior investment and markets analyst at Hargreaves. Lansdown.

Competition in the industry is also fierce, and compete with Uber Eats, Just Eat TKWY,
-0.53%
and a host of others, Streeter said, adding that Just Eat had previously announced plans to strengthen its operations in the UK.

Read: London to revise listing rules to attract tech IPOs and cash in blank check boom

Deliveroo is the latest company to benefit from an IPO market, which is on track for a record first quarter in terms of revenue from new listings, after a string of companies including cult shoe maker Dr. Martens DOCS,
+ 1.37%
and online greeting card reseller
+ 4.08%
debuted in the LSE market in recent weeks.

Deliveroo plans to issue dual class shares that would keep Shu under control for three years.

The structure, which is most common in the United States where it is used by companies including tech giants, Google Parent Alphabet GOOGL,
+ 0.28%
and Facebook FB,
+ 4.12%
comes amid a UK government-backed report released in February that recommended London allow founders to retain control after listing and reduce the amount of equity a company has to sell to foreigners, in order to ” encourage technology companies to choose the city for their IPOs.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos



picture credit

ExBUlletin

to request, modification Contact us at Here or [email protected]