Deliveroo’s London IPO Aiming For $12 Billion Valuation

Deliveroo London IPO Valuation UK

In one of the U.K.’s biggest public listings, food delivery startup Deliveroo is seeking a valuation as high as $12.8 billion (£8.8 billion) in its upcoming initial public offering (IPO) set to debut on the London Stock Exchange (LSE), CNBC reported on Monday (March 22).

The Amazon-backed company is seeking a price range of between £3.90 and £4.60 per share. The listing is considered a plus for the U.K., which is aiming to attract tech firms following Brexit.

The share sale will consist of 384.6 million shares, and that amount could be increased by as much as 10 percent if there is enough demand. Deliveroo said that in January and February, the total value of transactions it processes more than doubled.

Deliveroo confirmed its London listing earlier in March, despite losses in 2020 totaling $309 million (£223.7 million). However, losses are down from 2019’s £317 million. The listing is expected to go live next month, with Goldman Sachs and J.P. Morgan Cazenove as joint global coordinators. 

The London-headquartered food delivery platform has plans to grow across more regions in the U.K., aiming to add 100 new towns and cities throughout 2021. The startup is also looking to expand its reach in 150 of the locations it already serves. 

Deliveroo said last week that it hoped to raise $1.4 billion in its IPO. The additional $180 million raised in January could give the company a valuation topping $7 billion. 

According to data from Statista, Deliveroo is the third most popular food delivery app in the U.K., behind Netherlands-based Just Eat Takeaway.com, Domino’s and Uber Eats, headquartered in San Francisco.