Deliveroo plans to issue £1bn of new shares in upcoming London float
Food delivery giant Deliveroo said this morning that it plans to offer around £1bn of new shares in its upcoming London float.
The company confirmed that its public listing will also include the sale of shares by certain existing shareholders.
Deliveroo further added 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, while all other shares will carry one vote.
The takeaway app is set to open up the listing to retail investors and customers, making £50m worth of shares available to customers. Each customer will be able to apply for up to £1,000 worth of shares.
“Far too often normal people are locked out of IPOs, and the only participants are the institutional investors. I wanted to give as many customers as possible the chance to become shareholders,” Shu said last week.
While transactions may have surged to over £4bn during the pandemic, Deliveroo is still a loss making business.
Deliveroo said underlying gross profit soared 89.5 per cent to £358m in 2020, compared to £189m in the previous year. It narrowed underlying losses for the year to £223.7m, compared to £317m in 2019.