Deliveroo IPO set to value company at up to €10bn

Deliveroo has commenced its IPO. Photo: Hollie Adams/Bloomberg

Ellie Donnelly Twitter Email

March 22 2021 09:08 AM

Takeaway food delivery platform Deliveroo has said its initial public offering (IPO) will value it at up to €10bn.

The price range for the IPO in London has been set at £3.90 to £4.60 per share, which implies an estimated market capitalisation of between £7.6bn (€8.4bn) and £8.8bn (€10bn).

The IPO will comprise of new shares to be issued by Deliveroo (expecting to raise gross proceeds of approximately £1bn) and existing shares to be sold by certain existing shareholders, according to a statement from the group.

Will Shu, founder and CEO 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.”

Earlier this month Deliveroo released its results for 2020.

Its gross profit increased 89.5pc last year to £358m (€415m).

Nonetheless, the takeaway delivery company reported an overall loss for the year of £223.7m, down from a loss of £317min 2019.

The company, which launched in Ireland in 2015, has more than 1,800 restaurants across Dublin, Cork, Limerick and Galway on its platform.

Over the course of last year, Deliveroo grew its gross transaction value – the total amount of transactions it processes on its platform – by 64pc to £4.1bn from £2.5bn in 2019.

It benefited from the temporary closure of restaurants in its markets due to governments’ restrictions aimed at limiting the spread of the Covid-19 pandemic.

The company has more than six million monthly users across the countries it operates in.

Headquartered in London, Deliveroo operates in over 800 towns and cities across 12 markets, including Australia, Belgium, France, Hong Kong, Italy, Netherlands, Singapore, Spain, United Arab Emirates, Kuwait and the UK.