Deliveroo looks to sell $1.4b new shares in what may be biggest London IPO in 7 years

A man walks past the London Stock Exchange in the City of London October 11, 2013. REUTERS/STEFAN WERMUTH

Deliveroo said on Monday that it plans to sell around 1 billion pounds ($1.39 billion) of new shares in its upcoming initial public offering (IPO), as it began marketing what is expected to be the biggest London listing in more than seven years.

The British food delivery company, which is backed by Amazon, said its listing will also include the sale of shares by some existing shareholders, potentially pushing the deal size even higher.

The deal is expected to value the firm upwards of $7 billion, based on a private funding round completed in January, which would make it the largest London IPO by market cap since Royal Mail in October 2013.

Deliveroo confirmed that it will have two classes of shares, with founder and chief executive Will Shu to be the sole holder of “class B” stock which will give each of his shares 20 votes, whilst all other shares will carry one vote.

This arrangement is set to last for three years, which one source close to the deal said is designed to protect Deliveroo from a hostile takeover.

Dual-class share structures are a common feature of listed technology companies in the United States but are frowned on by some British investors as they can give executives outsized influence on shareholder votes relative to their stake sizes.

At the moment, London-listed companies cannot have a dual-class structure and gain access to the lucrative FTSE indices at the same time, though that is set to change if recommendations from a recent listings review are put in place.

Goldman Sachs and JP Morgan are leading the deal, while Bank of America, Citi, Jefferies and Numis are also part of the syndicate of banks managing the transaction.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.