Deliveroo to list in London with dual-class structure
LONDON: Takeaway meals app Deliveroo said yesterday that it had chosen London for its stock market listing, a major boost for the capital’s financial sector which has been roiled by Brexit.
Deliveroo, in line with other home-delivery companies, has seen demand soar in the past year owing to lockdowns during the coronavirus pandemic.
No date has been set for the initial public offering (IPO), while the group could be valued at more than $7 billion.
British Finance Minister Rishi Sunak welcomed the announcement, which comes after London’s financial sector, known as the City, recently lost its European share trading crown to Amsterdam following Britain’ exit from the European Union.
“The UK is one of the best places in the world to start, grow and list a business — and we’re determined to build on this reputation now we’ve left the EU,” he said in comments included in the Deliveroo statement.
“Deliveroo has created thousands of jobs and is a true British tech success story,” Sunak added.
Deliveroo chief executive Will Shu said he had no hesitation in choosing London for its upcoming listing.
“London is a great place to live, work, do business and eat. That’s why I’m so proud and excited about a potential listing here,” said Shu, who launched the company in 2013 with a delivery in London.
Deliveroo said it expected to initially adopt a dual-class share structure “to enable the company to execute on its long-term strategic vision in order to create long-term shareholder value”.
It said such structures, which involve two different classes of shares with differential voting rights, are commonplace on exchanges in the US, Hong Kong and in Europe.
“Alongside the dual-class share structure, Deliveroo intends to have a strong commitment to corporate governance standards including a majority independent board of directors as well as upholding diversity standards.’’