(Alliance News) -Â The Financial Times reported on Thursday that Legal & General Group PLC's asset management arm is unlikely to take part in Deliveroo's London IPO.
As well as Legal & General Investment Management, M&G, Aberdeen Standard and Aviva Investor have told the FT they will be shunning the food delivery platform's bumper float, with the newspaper reporting that several smaller fund houses that invest heavily in UK stocks are also planning to avoid the IPO.
The protest comes after a study by the Bureau of Investigative Journalism and the Independent Workers' Union of Great Britain found that, on an hourly basis, many Deliveroo riders in the UK were paid less than the minimum wage.
https://www.ft.com/content/fd86f79b-d813-44fb-96c1-ef25fa4a5751
Deliveroo at the start of the week said it will be worth just under GBP9 billion on admission to the London Main Market, as the company edges closer to its float.
Deliveroo will price its initial public offering between GBP3.90 and GBP4.60 per share. This would imply a market capitalisation between GBP7.6 billion and GBP8.8 billion.
Deliveroo last week confirmed it will have two share classes. The A class will be offered in the IPO while the B class will be solely held by Founder & Chief Executive Will Shu. Each of Shu's B shares will have 20 votes, while A shares each will have one.
By Lucy Heming;Â lucyheming@alliancenews.com
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