Deliveroo has announced ambitious plans to achieve a market capitalisation of up to £8.8 billion in its upcoming initial public offering (IPO) potentially becoming the biggest London float in a decade.
Today the delivery giant announced that it would sell 384 million shares at between £3.90 and £4.60, seeing it achieve a market capitalisation of between £7.6 billion and £8.8 billion.
This would make it the most valuable public listing on the London Stock Exchange (LSE) since 2011 when Glencore went public.
Deliveroo said that it hopes to raise £1.6 billion through the share sale, £1 billion of which it will reinvest with the rest going to existing investors.
Founder and chief executive Will Shu said the money raised will be invested in “innovation, developing new tech tools to support restaurants and grocers, providing riders with more work and extending choice for consumers”.
Shu told Sky News that he plans to sell of a portion of his 6.2 per cent stake, which would be worth around £550 million if the IPO hits targets.
Its ambitious pricing comes as Deliveroo, which is yet to turn a profit, announced that gross transaction values had more than doubled year-on-year in January and February in the UK, rising 130 per cent.
Deliveroo said: “The way we think about it is simple: there are 21 meal occasions in a week — breakfast, lunch, and dinner — seven days a week. Right now, less than one of those 21 transactions takes place online. We are working to change that.”