Deliveroo raises £7.5b in London listing

Food delivery company Deliveroo will price its initial public offering in London at  £3.90  per share, banks working on the deal said on Tuesday, at the bottom end of a previously indicated range.

This equates to a market capitalization  of £7.59 billion, excluding any over-allotment shares, the company said in a statement.

The stock will begin trading on the London Stock Exchange under the ticker “ROO.''

The listing of London-based company, founded by boss William Shu in 2013, is set to be London’s biggest IPO since Glencore’s in May 2011 and also the biggest tech float on the London Stock Exchange.

Heavyweight investors Aberdeen Standard Life, Aviva, Legal & General Investment Management and M&G have all said they will sit the deal out, amid criticism of its workers’ rights.

Some of them also question whether the loss-making business can ever justify its valuation.

Deliveroo founder and Chief Executive, Will Shu, said he is proud the company “is going public in London - our home.''

“As we reach this milestone I want to thank everyone who has helped to build Deliveroo into the company it is today – in particular our restaurants and grocers, riders and customers. In this next phase of our journey as a public company we will continue to invest in the innovations that help restaurants and grocers to grow their businesses, to bring customers more choice than ever before, and to provide riders with more work. Our aim is to build the definitive online food company and we’re very excited about the future ahead."-Reuters/The Standard