Deliveroo said it is planning to file for a public listing in London with a time-limited, dual-class share structure, which would enable Will Shu, the company’s U.S.-born co-founder and chief executive officer, to retain control.
A dual-class share structure consists of two share classes, each with different voting rights, Deliveroo said in a Thursday (March 4) blog post. It’s a common structure on exchanges in the U.S., Hong Kong, and within Europe.
“Deliveroo was born in London. This is where I founded the company and delivered our first order,” said Shu, adding that he is “so proud” to potentially file a listing on the city’s exchange.
The company, founded in 2013, said the online food delivery industry is tracking for impressive growth and will just expand more in the future. A London listing would help Deliveroo move ahead with expansion plans and achieve its goal of becoming “the definitive online food company.”
Deliveroo’s initial public offering (IPO) is expected to be as much as $10 billion, the Financial Times reported, citing sources.
The dual-class share structure was a result of U.K. Chancellor Rishi Sunak’s approval to change the listing regulations to give founders more control after a public filing. The revisions were intended to bring in tech companies like Deliveroo.
Lord Jonathan Hill, former EU financial services commissioner, published a recommendation on Wednesday (March 3) with numerous reforms aimed at loosening U.K. listing rules. The new rules may not take effect in time for Deliveroo’s filing, the Financial Times reported. Deliveroo’s initial IPO paperwork is anticipated as early as next week.
Deliveroo was valued at $7 billion after raising $180 million in January from existing investors Durable Capital Partners and Fidelity Management & Research.
The U.K.’s Competition and Markets Authority in August 2020 approved Amazon’s acquisition of a 16 percent stake in Deliveroo. The competition watchdog warned the company not to go after a bigger pierce of Deliveroo.