(Alliance News) - Deliveroo Holdings PLC plunged on its first day of trading after pricing its initial public offering at GBP3.90 per share, the bottom of a previously marketed range,
With conditional dealings in Deliveroo shares starting on Wednesday, the stock was trading at just 305.00 pence in London, down 22% from the IPO price.
On March 22, Deliveroo set a price range of GBP3.90 to GBP4.60 per share, which would have valued the company at as much as GBP8.8 billion. Since then, institutional investors including Aviva PLC, Standard Life Aberdeen PLC and Legal & General Group PLC said publicly that they won't take part in the IPO, citing concerns including shareholder voting rights and working conditions for couriers.
The London-based food delivery company will still raise about GBP1 billion from new shares in the IPO, which it said it will invest in growth opportunities and innovation.
The IPO price of GBP3.90 gave the company a valuation of GBP7.59 billion on admission.
"In this next phase of our journey as a public company we will continue to invest in the innovations that help restaurants and grocers to grow their businesses, to bring customers more choice than ever before, and to provide riders with more work," Deliveroo Chief Executive Will Shu said.
Deliveroo offered 'A' shares in its IPO, while 'B' shares are held solely by Shu. Each of Shu's B shares will have 20 votes, while A shares each will have one.
Unconditional dealings in Deliveroo shares start next Wednesday.
By Ivan Edwards; ivanedwards@alliancenews.com
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