Deliveroo to name Goldman as broker despite disastrous IPO debut
Goldman Sachs and Barclays are close to being picked as Deliveroo’s joint brokers, Sky News reported today.
A source close to Deliveroo said the London-listed food delivery app will finalise the appointments of the two US investment bank behemoths as joint corporate brokers – a key role for investment banks as they seek to advise company boards on lucrative deals.
This comes after Goldman Sachs pumped tens of millions of pounds into Deliveroo shares in order to prop up trading of the takeaway app in April, after investors shunned its market debut.
The investment bank had bought around £75m of Deliveroo shares – equivalent to a quarter of stock traded in the first two days after the London listing – following its disastrous debut to the London Stock Exchange in March, which saw the company’s shares slump 30 per cent.
Barclays did not play any role in the company’s initial public offering.
Deliveroo closed at 314.2p on Friday, and the app’s market value is now £5.76bn.