Will Shu, CEO of Deliveroo.
Aurelien Morissard | IP3 | Getty Images
LONDON – Deliveroo plans to raise £ 1bn ($ 1.38bn) next month in the initial public offering that is expected to start on the London Stock Exchange.
The food delivery service plans to offer up to 256,456,256 new shares at £ 3.90 to £ 4.60 per share, according to the company’s prospectus published on Tuesday. Existing shareholders also plan to sell up to 128,205,128 shares.
The exchange will value the business between £ 7.6 billion and £ 8.8 billion, which is higher than previous reports have suggested. Even at the bottom of the range, Deliveroo will still be the largest technology fair in Europe so far this year and the largest in Britain for a decade.
Deliveroo’s IPO will make the company’s largest shareholders hundreds of millions. Some of them will drop some shares in the IPO, but investors plan to get their hands on most of them.
The biggest individual winner is Will Shu, CEO of Deliveroo. After the IPO, it will own 115,227,441 shares, or 6.3% of the share capital. He will also have more than 50% of the voting rights. Assuming that Deliveroo prices are £ 4.25 per share, the center of the range, Shu’s stake will be worth around £ 490 million. However, it could climb to £ 530 million if the price is at the top of the range.
In general, Amazon can earn the most from the IPO. The tech giant will have an 11.5% stake (209,720,160 shares) in Deliveroo after the exchange, which is worth about £ 1bn depending on the price. It currently holds 15.8%, but he plans to sell 23,302,240 shares for between £ 90.8m and £ 107.2m, depending on the price.
Meanwhile, Index Ventures, which also supported Facebook and Slack, will be left with a 7.5% stake of around £ 577 million if it is in middle-class prices, while DST Global, which also supported the British fintech checkout, will remain with a stake of 7.4% worth £ 569 million. Both companies plan to sell about 15 million shares for about £ 60 million.
Other VCs that will win big include Greenoaks, T. Rowe and Fidelity, which will also hold a stake of around £ 450 million to £ 500 million each. Meanwhile, Bridgepoint and Accel will hold interests of around £ 300 million if prices are at the middle level.
The listing of Deliveroo takes place on April 7th. The stock market is currently unknown, but options include ‘RED’ and ‘DROO’.
The company’s prospectus shows that Deliveroo’s revenue increased by 54% in 2020, while the gross margin increased from 24% to 30%. However, Deliveroo still showed an annual loss of £ 224 million.
This comes after US competitor DoorDash was valued at $ 60 billion on the New York Stock Exchange in December. Meanwhile, Grubhub was valued at just $ 5 billion when it became known in 2016.