7th Apr 2021 11:28
(Correcting that Deliveroo customers who participated in the IPO were subject to lock in conditions and could only trade shares once conditional dealing began.)
(Alliance News) - Deliveroo Holdings PLC rallied on Wednesday as shares in the food delivery company began unconditional dealings, following its disappointing stock market flotation last week.
Retail investors are now able to trade Deliveroo shares, following conditional trading which began last Wednesday. Under normal circumstances, most initial public offerings are closed to small investors, however in a bid to demonstrate loyalty to its user base, Deliveroo made 50 million worth of shares available to customers who registered their interest via the company's app.
PrimaryBid, the broker Deliveroo used to manage the offering to customers, outlined the terms of the offer saying investors who took up the offer would initially be locked in during the usual 'conditional trading' period, open only to institutional investors.
Deliveroo received a cold reception from the market last week amid concerns over its lofty valuation, workers rights and its dual-class share structure.
The stock was up 2.7% at 287.60 pence in London on Wednesday, but are down 26% from the initial public offering price of 390p.
By Arvind Bhunjun; [email protected]
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