(Alliance News) - Deliveroo PLC on Monday set out plans to join London's Main Market, posted an improved annual performance in 2020, though it remained loss-making, and said UK users of its app will be able to apply for shares in the soon-to-be-listed takeaway food firm.
Deliveroo, the holding company of Roofoods Ltd, on Thursday last week had said it picked London for a potential listing, set to be the biggest in a flurry of initial public offerings at the start of 2021. The IPO is expected to value the takeaway food delivery service at up to GBP7.5 billion.
The company on Monday confirmed it expects to join the Main Market of the London Stock Exchange. The IPO will consist of new stock as well as existing shares sold by current shareholders. US online retailing giant Amazon.com Inc had a 16% stake in Deliveroo following an investment back in 2019.
Deliveroo 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.
Goldman Sachs International and JP Morgan Securities PLC will be joint global co-ordinators. Merrill Lynch International, Citigroup Global Markets Ltd, Jefferies International Ltd and Numis Securities Limited will serve as joint bookrunners should the float go ahead.
"Our mission is to be the definitive online food company. We want to be the platform that people turn to whenever they think about food," Deliveroo said.
In 2020, its gross transaction value improved 64% to GBP4.1 billion. Underlying gross profit rose 90% to GBP357.5 million and its underlying adjusted loss before interest, tax, depreciation and amortization narrowed to GBP9.6 million from GBP231.6 million.
Underlying loss for 2020 was much wider at GBP223.7 million, narrowed from GBP317.3 million in 2019.
The company added that it is operating in an addressable market worth GBP1.2 trillion. Food delivery firms such as Deliveroo grew in popularity in 2020, as lockdown measures prevented restaurants from providing in-person dining services.
"With our global scale, proven track record of entering and growing in new markets, we believe we can realise further growth opportunities both in existing and new markets," the company added.
On its IPO, Deliveroo said it will include a community offer which will allow "UK-based consumers with a Deliveroo account to apply for shares in the company".
Its "longest serving and hardest working riders" may receive individual payments of up to GBP10,000, the company said.
On Sunday, AJ Bell PLC lauded Deliveroo's decision to include retail investors in its planned London stock market float, rather than "restricting" access to institutions.
In February, the bosses of Hargreaves Lansdown PLC, AJ Bell and Interactive Investor Services Ltd had called on the UK government to ensure the ability of retail investors to participate in London IPOs.
By Eric Cunha; ericcunha@alliancenews.com
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Hargreaves Lansdown (HL.)
AJ Bell (AJB)
