Deliveroo’s London IPO Could Raise $148 Million For Amazon 

Amazon could sell off some of its stake in Deliveroo, after its ownership percentage — now 15.8 percent — could end up dropping to 11.5 percent following the food delivery startup’s initial public offering (IPO) on the London Stock Exchange (LSE), Bloomberg reported on Tuesday (March 23), citing the prospectus. 

By selling some of its stake in advance of the IPO, Amazon could raise an estimated £107 million ($148 million) by unloading up to 23.3 million shares at an upper-range price of £4.60 per share, according to Bloomberg’s calculations.

Deliveroo started accepting purchase orders from investors yesterday (March 22) in the sale of some £1.77 billion shares of stock. The U.K. delivery startup is eyeing a fundraise from the listing of roughly £1 billion. Amazon and other early investors would get the balance of the proceeds.

Amazon isn’t the only Deliveroo investor looking to sell down stakes in the company’s IPO — Index Ventures, DST, Greenoak, Bridgepoint, and Accel are also following suit. Both Fidelity Investments and T. Rowe Price Group, however, have decided not to sell any shares in the offering, according to the prospectus, per Bloomberg.

Will Shu, Deliveroo’s co-founder and chief executive officer (CEO), is reportedly planning to sell 6.7 million shares, worth about £30.8 million pounds at the upper price range. Following the IPO, he will hold about a 6.3 percent stake in the company he helped launch. 

As the only holder of Class B shares, he will have 57.5 percent of Deliveroo’s voting rights. Class B shares carry 20 votes each, whereas Class A shares are worth one vote apiece. On the company’s third-year IPO anniversary, the Class B stock will convert into Class A. 

London-headquartered Deliveroo is tracking to raise in excess of $12 billion in its public listing, expected to happen later this month. The latest share price update was 50 percent higher than January forecasts. The popular food delivery firm is available across a dozen European, Middle Eastern, and Asian countries.