Deliveroo CEO Will Shu.
Aurelien Morissard | IP3 | Getty Images
LONDON – Deliveroo plans to raise £ 1 billion ($ 1.38 billion) in its first public offering next month when it is expected to appear on the London stock exchange.
The food delivery service expects to offer up to 256,456,256 new shares at £ 3.90 to £ 4.60 per portion, according to the company’s forecast, announced on Tuesday. Existing shareholders also plan to sell up to 128,205,128 shares.
The IPO will add between £ 7.6 billion and £ 8.8 billion to the company, which is higher than previous reports have suggested. Even at the lower end of the range, Deliveroo will remain the largest tech IPO in Europe so far this year and the largest in Britain for a decade.
IPO Deliveroo is poised to make hundreds of the company’s major shareholders. Some of them load some of the shares in the IPO but investors plan to hold on to most of them.
The biggest individual winner is Deliveroo CEO Will Shu. Following the IPO, it will own 115,227,441 shares, or 6.3% of share capital. He will also have more than 50% of his voting rights. Assuming Delivery prices are £ 4.25 per portion, mid-range, Shu will be worth around £ 490 million. However, it could climb as high as £ 530 million if the price is at the top end of the range.
Overall, Amazon stands to get the most out of the IPO. The tech giant will hold an 11.5% stake (209,720,160 shares) in Deliveroo following the IPO which will be worth around £ 1 billion in terms of prices. It currently owns 15.8% but expects to sell 23,302,240 shares for anywhere between £ 90.8 million and £ 107.2 million, depending on prices.
Meanwhile, Index Ventures, which has also backed Facebook and Slack, will be left with a 7.5% share of around £ 577 million if it prices mid-range, while leaving DST Global, which has also supported the UK fintech Checkout with a 7.4% stake worth £ 569 million. Both companies plan to sell around 15 million shares for around £ 60 million.
Other VCs set to win big are Greenoaks, T. Rowe and Fidelity, with pledges of around £ 450 million to £ 500 million each. Meanwhile, Bridgepoint and Accel will bet around £ 300 million if prices are at mid-range.
The Deliveroo listing will take place on April 7. The stock ticker is not currently known but options include “ROO” and “DROO.”
The company’s forecast shows that Deliveroo’s revenue rose 54% in 2020, while overall margins were up from 24% to 30%. However, Deliveroo was still posting a full-year loss of £ 224 million.
It comes after U.S. rival DoorDash worth $ 60 billion in IPO on the New York stock exchange in December. Meanwhile, Grubhub was valued at just $ 5 billion when it went public in 2016.