Deliveroo Set To Raise Up To $12 Billion In IPO

Deliveroo Set To Raise Up To $12 Billion In IPO
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Amazon-backed Deliveroo is seeking a valuation of up to $12 billion in its initial public offering (IPO) in London. The food delivery service set a price range of £3.90 to £4.60 per share, which implies a market capitalization of between £7.6 billion and £8.8 billion (US$12.2 billion).

Q4 2020 hedge fund letters, conferences and more

Deliveroo IPO set to be one of the U.K’s largest in years

According to CNBC, Deliveroo’s IPO is likely to be one of the largest listings in the U.K. in several years. Earlier this month, the food delivery app announced its plans to hold an IPO in London, which gives the stock exchange a big win following Brexit. The U.K. has been trying to pull in more high-tech growth companies.

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Mohnish Pabrai Indian-American businessman, investor, and philanthropist famous hedge fund investors, value investors, chai with pabrai, heads i win tails i don't lose, pabrai funds, Mosaic: Perspectives on Investing, clone investing, The Education of a Value Investor, The Dhandho Investor: The Low - Risk Value Method to High Returns, Zinc, Horsehead holdingsAt the end of January, value investor Mohnish Pabrai held a virtual Q&A session with Clemson University students. Q4 2020 hedge fund letters, conferences and more In the 45-minute session, the investor discussed several topics. Focusing . . . SORRY! This content is exclusively for paying members. SIGN UP HERE If you are subscribed and Read More

Deliveroo will have a dual-class share structure that provides founder and CEO Will Shu more voting rights per share. He will receive 20 votes for every share he owns, while other investors will receive just one vote per share. Deliveroo wants to raise at least £1 billion in its IPO. The company plans to use the proceeds from the offering to enhance its platform and dive deeper into on-demand deliveries for grocery orders, which have done exceptionally well during the pandemic.

Shu said in a statement today that going public will allow them to “continue to invest in innovation, developing new tools to support restaurants and grocers, providing riders with more work and extending choice for consumers, bringing them the food they love from more restaurants than ever before.”

Big turnaround at Deliveroo

Deliveroo said in a trading update today that the value of the transactions it processed more than doubled in the first two months of the year. The company received a boost from the COVID-19 lockdown in the U.K. as volumes climbed 130% year over year in the U.K. and Ireland. Other markets were up 112%.

The company was close to failing last year during a competition review into Amazon’s minority stake in the company. However, it reached operating profitability toward the end of the year due to increased demand for online takeout apps caused by the pandemic. Shu said the company has had a strong start to this year and that they “are only at the start of an exciting journey in a large, fast-growing online food delivery market, with a huge opportunity ahead.”

Deliveroo has set aside £50 million worth of shares to be offered to its customers. The company includes a large banner ad inside its app to promote the offering.
Amazon-backed Deliveroo is seeking a valuation of up to $12 billion in its initial public offering (IPO) in London. The food delivery service set a price range of £3.90 to £4.60 per share, which implies a market capitalization of between £7.6 billion and £8.8 billion (US$12.2 billion).

Q4 2020 hedge fund letters, conferences and more

Deliveroo IPO set to be one of the U.K’s largest in years

According to CNBC, Deliveroo’s IPO is likely to be one of the largest listings in the U.K. in several years. Earlier this month, the food delivery app announced its plans to hold an IPO in London, which gives the stock exchange a big win following Brexit. The U.K. has been trying to pull in more high-tech growth companies.

Deliveroo will have a dual-class share structure that provides founder and CEO Will Shu more voting rights per share. He will receive 20 votes for every share he owns, while other investors will receive just one vote per share. Deliveroo wants to raise at least £1 billion in its IPO. The company plans to use the proceeds from the offering to enhance its platform and dive deeper into on-demand deliveries for grocery orders, which have done exceptionally well during the pandemic.

Shu said in a statement today that going public will allow them to “continue to invest in innovation, developing new tools to support restaurants and grocers, providing riders with more work and extending choice for consumers, bringing them the food they love from more restaurants than ever before.”

Big turnaround at Deliveroo

Deliveroo said in a trading update today that the value of the transactions it processed more than doubled in the first two months of the year. The company received a boost from the COVID-19 lockdown in the U.K. as volumes climbed 130% year over year in the U.K. and Ireland. Other markets were up 112%.

The company was close to failing last year during a competition review into Amazon’s minority stake in the company. However, it reached operating profitability toward the end of the year due to increased demand for online takeout apps caused by the pandemic. Shu said the company has had a strong start to this year and that they “are only at the start of an exciting journey in a large, fast-growing online food delivery market, with a huge opportunity ahead.”

Deliveroo has set aside £50 million worth of shares to be offered to its customers. The company includes a large banner ad inside its app to promote the offering.

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