A Deliveroo courier drives along Regent Street and delivers takeaways in central London during Covid-19 Tier 4 restrictions.
Pietro Recchia | SOPA Images | LightRocket via Getty Images
LONDON – British delivery company Deliveroo announced on Thursday that it intends to list in London, in a boost for the City after Brexit.
The company, which is backed by Amazon, is expected to be announced later this year. It went from near-failure in 2020 amid a competitive review of Amazon’s minority investment, to operating profitability by the end of the year thanks to the increase in demand for online takeaway services by the coronavirus. Amazon’s stake in Deliveroo was green-lighted by regulator last summer.
Deliveroo has said it will adopt a dual-class share structure for its debut in the market, giving its founder and CEO, Will Shu, increased voting rights and thus more control over the direction of the company. This comes after a government-backed review called for the reform of the London listing regime, including the ability to list two-class shares that were provisional by Google and Facebook.
In the case of Deliveroo, the two-class structure will be limited to three years, followed by a move to a traditional single-class share structure, in line with recent recommendations.
“Deliveroo was born in London,” Shu said in a statement on Thursday. “This is where I started the company and placed our first order. London is a wonderful place to live, work, do business and eat. That’s why I’m so proud and excited about a possible offer here.”
The news is a boon for the London stock market, which wants to attract more high-tech companies to compete with New York and the European Union after Britain’s withdrawal from the bloc. Amsterdam surpassed London last month as the largest share capital in Europe.
“The UK is one of the best places in the world to start, grow and list a business – and we are determined to build on that reputation now that we have left the EU,” said the British minister. of finance, Rishi Sunak, said. “That’s why we’re looking at reforms to encourage even more growing, dynamic businesses to list in the UK”
“Deliveroo has created thousands of jobs and is a true British technological success story,” Sunak added. “It is good news that the next phase of their growth in public markets in the UK will be.”
Deliveroo has not yet released pricing information for its initial public offering. It recently raised $ 180 million in new financing at a $ 7 billion valuation. In addition to Amazon, Deliveroo is also supported by Durable Capital Partners, Fidelity, T. Rowe Price, General Catalyst, Index Ventures and Accel.
“This is a major boost for UK technology,” said Stephen Kelly, chairman of lobby group Tech Nation. “With seven new unicorns created in 2020 alone, the UK now has a total of 80 scales worth more than £ 1 billion.
“It’s more than twice as many unicorns as Germany and France,” Kelly added. “We expect to see more of our own success stories follow, which is just the beginning of a golden age for British technology.”
Several other companies are rumored to be investigating London deals, including fintech startup Wise and cybersecurity company Darktrace. On Monday, the Danish rating website Trustpilot announced that it was considering starting a stock exchange in London.