Deliveroo’s CEO, Will Shu.
Aurelien Morissard | IP3 | Getty Images
LONDON – Deliveroo plans to pick up £ 1 billion ($ 1.38 billion) in its IPO next month, when it is expected to debut on the London Stock Exchange.
The meal delivery service plans to offer up to 256,456,256 new shares at £ 3.90 to £ 4.60 per share, according to the company’s prospectus released Tuesday. Existing shareholders also plan to sell 128,205,128 shares.
The IPO will value the company between £ 7.6 billion and £ 8.8 billion, which is higher than suggested in previous reports. Even at the lower end of the range, Deliveroo will still be the largest tech IPO in Europe to date this year and the largest in the UK for a decade.
Deliveroo’s IPO will bring the company’s top shareholders in the hundreds of millions. Some of them will sell some of the shares in the IPO, but investors plan to keep most of them.
The biggest individual winner is Will Shu, CEO of Deliveroo. He owns 90,570,400 shares, or 6.1% of the share capital. After the IPO, he will own 115,227,441 shares, or 6.3% of the share capital. He will also have more than 50% of the voting rights.
Assuming Deliveroo’s price at £ 4.25 per share, the mid-point of the range, Shu’s post-IPO stake will be worth around £ 490 million. However, it can go up to £ 530 million if the price is on the higher end of the range.
In general, Amazon has benefited most from the IPO. The tech giant will have an 11.5% (209,720,160 shares) stake in Deliveroo after the IPO, which will be worth around £ 1 billion depending on pricing. It currently owns 15.8%, but plans to sell 23,302,240 shares for somewhere between £ 90.8m and £ 107.2m depending on pricing.
Meanwhile, Index Ventures, which has also backed Facebook and Slack, currently owns 150,889,000 shares, or 10.2% share capital. If Deliveroo is nurturing in the mid-market segment, its stake at the time of the IPO is worth £ 641 million.
Meanwhile, DST Global, which has also backed British fintech Checkout, currently owns 148,676,600 shares, or 10.1% share capital. If Deliveroo is nurturing in the mid-market segment, its stake at the time of the IPO is worth £ 632 million.
Both Index and DST Global plan to sell approximately 15 million shares for approximately £ 60 million.
Other VCs that will win big include Greenoaks, T. Rowe and Fidelity, each of which owns between 100 million and 150 million shares. Their stake will be worth approximately £ 500 million to £ 600 million each at the time of the IPO, depending on pricing. Meanwhile, Bridgepoint and Accel have stakes that will be worth nearly £ 350 million if prices are in the mid-range segment.
Deliveroo will be listed on April 7. The stock price is currently unknown, but options include “ROO” and “DROO.”
The company’s prospectus shows that Deliveroo’s revenue has grown 54% in 2020, while its gross margin has increased from 24% to 30%. However, Deliveroo still posted a full year loss of £ 224 million.
It comes after US rival DoorDash was valued at $ 60 billion in an IPO on the New York Stock Exchange in December. Meanwhile, Grubhub was estimated to be worth just $ 5 billion when it went public in 2016.