29th Mar 2021 08:22
(Alliance News) - Deliveroo PLC has said it will price shares for its highly anticipated stock market listing towards the bottom of its price range due to "volatile" market conditions.
It comes after a week in which a raft of leading fund managers said they will reject the listing – which could be the UK's biggest for a decade – amid concerns over workers' rights.
The takeaway delivery firm is set to announce its final pricing on Wednesday morning but has narrowed its share price range to between GBP3.90 and GBP4.10 per share.
Last week, the company said it intended to offer a range of between GBP3.90 and GBP4.60 per share, which could have potentially valued the business up to GBP8.8 billion.
It said it now expects it will be valued at between GBP7.6 billion and GBP7.85 billion.
The decision to offer towards the bottom end of its price range comes after a number of US tech stocks fell below their issue prices after initial public offerings in recent weeks.
A Deliveroo spokesman said: "Deliveroo has received very significant demand from institutions across the globe.
"The deal is covered multiple times throughout the range, led by three highly respected anchor investors.
"Given volatile global market conditions for IPOs, Deliveroo is choosing to price responsibly within the initial range and at an entry point that maximises long-term value for our new institutional and retail investors."
Last week, some of the UK's largest fund managers, including Legal & General Group PLC's asset management arm and Aviva PLC's Aviva Investor, said they would reject the flotation, highlighting issues related to its business model, workers' rights and regulatory concerns.
Firms have also raised concerns over share structure, which will see founder Will Shu have 20 votes per share, compared with one per share for other investors, giving him a majority position at shareholder votes.
By Henry Saker-Clark, PA City Reporter
source: PA
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