14th Jan 2021 07:00
(Alliance News) - Deliveroo has hired a who's who of investment banks to help prepare for its London Stock Exchange float, which is expected to value the food delivery firm at over GBP5 billion, Sky News reported late Wednesday.
Bank of America Merrill Lynch, Citigroup Inc, Jefferies Group LLC and Numis Securities Ltd have been appointed to work on a listing, Sky News reported. JPMorgan Chase & Co and Goldman Sachs Group Inc also will be involved, Sky News added.
The initial public offering, which would be by far London's biggest so far in 2021, is expected to take place in or around April, Sky News added.
Citing market sources, Sky News reported that the banks are preparing for Deliveroo to be valued at over GBP5 billion and potentially even as high as GBP8 billion.
https://news.sky.com/story/deliveroo-picks-banks-to-serve-up-blockbuster-float-12187105
Food delivery companies such as Deliveroo, New York-listed DoorDash Inc and FTSE 100 constituent Just Eat Takeaway.com NV have seen demand spike due to Covid-19 lockdown measures.
Deliveroo on Tuesday said it plans to expand into around 100 new towns and cities across the UK in 2021.
It revealed it will launch in new regions across the UK, Yeovil, Bangor, East Kilbride, King's Lynn, Scarborough, Llanelli and Exmouth, although the full list of locations has not yet been announced.
Deliveroo currently operates in over 200 locations and said it will also expand its reach from these existing sites over the year.
The company has also landed a raft of partnerships with grocery retailers, such as Aldi, Wm Morrison Supermarkets PLC, J Sainsbury PLC and Waitrose.
In August of last year, Amazon.com Inc's investment in Deliveroo was given full clearance, after UK regulators said it will not "substantially lessen competition".
Amazon was back in May 2019 named as the largest investor in a USD575 million fundraise. The US online retailing giant held a 16% stake in Deliveroo following the investment.
By Eric Cunha; [email protected]
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