Breaking Stories

Deliveroo targets one-billion-pound fundraising as part of IPO

Deliveroo said it plans to raise around £1bn as part of its initial public offering (IPO) as the takeaway delivery firm confirmed plans to list on the standard segment of the main market of the London Stock Exchange.

The company, which is backed by e-commerce giant Amazon Inc (NASDAQ:AMZN), said on Monday its IPO will consist of the sale of new shares as well as shares held by existing investors and will be targeted to institutional investors. The sale will also include a community offer allowing users with UK Deliveroo accounts to apply for shares in the group.

READ: Deliveroo confirms plans for London IPO

The confirmation of Deliveroo’s IPO plans followed an announcement last week that it was expecting to float on the LSE, as it reported an underlying loss for 2020 of £223.7mln, narrower than the £317.3mln loss in the prior year, while its gross transaction value (GTC), the total amount of transactions processed on its platform, soared 64.3% to £4.1bn.

The transaction boom came as the Coronavirus (COVID-19) pandemic and resultant lockdown measures forced people to stay indoors and rely heavily on delivery firms for food and other essentials. The shuttering of restaurants also led to a sharp surge in demand for takeaways, Deliveroo’s prime business area.

While a date for the float has not yet been confirmed, Deliveroo’s IPO will place it head-to-head with its main listed rival, Just Eat Takeaway.com NV (LON:JET), as the two firms continue to vie for the biggest slice of the UK’s takeaway delivery market.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *