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[Slashdot] - Amazon-Backed Deliveroo IPO Set For London Stock Exchange


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"Deliveroo is set to begin one of the largest IPOs on the London Stock Exchange in a decade," writes fermion. "It has reduced its valuation in response to customer complaints." CNBC reports: The Amazon-backed company announced Monday that it will now sell shares for 3.90 pounds ($5.40) to 4.10 pounds each instead of 3.90 pounds to 4.60 pounds each. As a result, Deliveroo's market cap will be between 7.6 billion pounds and 7.8 billion pounds, instead of between 7.6 billion pounds and 8.8 billion pounds. Deliveroo said it's reacting to market conditions, which have taken a turn for the worse in the last week. Half of the tech IPOs in the U.S., and in Europe, the Middle East, and Africa, priced in the bottom third of their announced ranges last week. However, the new share price range announcement also comes amid an investor revolt. Several large investors said they plan to shun the Deliveroo IPO on April 7 over workers' rights and the company's share ownership structure, which gives CEO Will Shu over 50% of the voting rights. Deliveroo rebuffs accusations it does not treat its riders properly and says that its platform gives them the flexibility to work when they want, as do rivals like Just Eat and UberEats. Deliveroo insisted that the share price reduction had nothing to do with the investor backlash and the union action, insisting it is purely down to market conditions. It pointed out that four out of six U.S. tech IPOs priced last week are below offer price. They added that Deliveroo has seen strong demand from investors worldwide but declined to specify which ones.

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