30th Mar 2021 09:00
(Alliance News) - Deliveroo PLC faces a stock market launch that will value the app-driven meals delivery firm at GBP7.6 billion, a source close to the matter said Tuesday.
Deliveroo's initial public offering due Wednesday will be priced at GBP3.90 per share, according to the source.
On Monday, Deliveroo narrowed its share price range to between GBP3.90 and GBP4.10 per share.
The firm blamed "volatile" market conditions - which comes after a week in which a raft of leading fund managers said they will reject the listing amid concerns over workers' rights.
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.
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.
source: AFP
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