May 20, 2022
Deliveroo rider

British food delivery firm Deliveroo is seeking a valuation of up to £8.8 billion ($12.2 billion) when it lists its shares on the London stock market in its upcoming initial public offering.

The takeaway company, which is backed by Amazon, has said it plans to sell its shares at a price of between £3.90 and £4.60, meaning it is set to be one of the largest UK share listings in years.

Deliveroo said the planned listing would be comprised of a combination of new shares and some shares being sold by existing shareholders. The company’s aim is to raise as much as £1bn to fund further expansion.

Will Shu, who founded the company in 2013, is expected to sell 6.7m shares worth up to £30m when the company launches on the stock market on April 7th. He will retain a 6.3% stake in the company, worth about £550m at current valuations. Amazon are amongst existing shareholders expected to sell shares worth £536m.

“We are proud to be listing in London, the city where Deliveroo started,” Shu said in a statement.

“Becoming a public company will enable us to continue to invest in innovation, developing new tech tools to support restaurants and grocers, providing riders with more work and extending choice for consumers, bringing them the food they love from more restaurants than ever before.”

London Stock Exchange data shows the Deliveroo IPO is set to be the biggest since the mining company Glencore’s £40bn debut in May 2011, and dwarves Worldpay’s $7.4bn valuation in 2015.

Deliveroo also released a trading update in which it said it was continuing to benefit from increased demand due to measures aimed at preventing the spread of Covid. The total value of transactions processed on its platform grew by 121% across all markets year on year in January.