Deliveroo targets £9bn market cap in London listing as food order values more than double
Deliveroo is targeting a market capitalisation of almost £9bn through its upcoming public listing, the food ordering app announced this morning as it revealed transaction values had more than doubled at the beginning of the year.
The firm this morning unveiled further plans for its London initial public offering (IPO), setting the price range for the offer at £3.90 to £4.60 per share.
That means Deliveroo will hit a market capitalisation of between £7.6bn and £8.8bn. It is aiming to raise around £1bn to invest in its expansion plans.
Deliveroo, which has seen demand soar during lockdown, also announced today that trading had remained strong in January and February this year with order values more than doubling.
The total value of transactions it processes on the Deliveroo platform has grown 121 per cent year on year in the first two months of 2021, driven by 130 per cent growth in the UK and Ireland.
Deliveroo had previously revealed that transaction values jumped 64 per cent in 2020, rising to £5bn in the fourth quarter of last year.
Will Shu, founder and chief executive of Deliveroo, said: “We are proud to be listing in London, the city where Deliveroo started.
“Becoming a public company will enable us to continue to invest in innovation, developing new tech tools to support restaurants and grocers, providing riders with more work and extending choice for consumers, bringing them the food they love from more restaurants than ever before.
“This will help us in our mission to become the definitive food company. We have seen a strong start to 2021 and we are only at the start of an exciting journey in a large, fast-growing online food delivery market, with a huge opportunity ahead.”