Deliveroo narrows share price range as expected valuation drops by £1bn
Deliveroo has said it will price shares for its highly anticipated stock market listing towards the bottom of its price range due to “volatile” market conditions.
The takeaway delivery service is set to announce its final pricing on Wednesday morning but has narrowed its share price range to between £3.90 and £4.10 per share.
Last week, the company had said it intended to offer a range of between £3.90 and £4.60 per share, which could have potentially valued the business at up to £8.8bn.
It said it now expects it will be valued at between £7.6bn and £7.85bn.
A Deliveroo spokesman said: “Deliveroo has received very significant demand from institutions across the globe.
“The deal is covered multiple times throughout the range, led by three highly respected anchor investors.
“Given volatile global market conditions for IPOs, Deliveroo is choosing to price responsibly within the initial range and at an entry point that maximises long-term value for our new institutional and retail investors.”