Will Shu, CEO of Deliveroo.
Aurelien Morissard | IP3 | Getty Images
LONDON – Deliveroo plans to raise £ 1 billion ($ 1.38 billion) as part of its IPO next month, if it is expected to debut on the London Stock Exchange.
The grocery delivery service plans to offer up to 256,456,256 new shares at a price of £ 3.90 to £ 4.60 per share, according to the company’s prospectus released Tuesday. Existing shareholders also plan to sell up to 128,205,128 shares.
The IPO will value the company at between £ 7.6 billion and £ 8.8 billion, higher than suggested in previous reports. Even at the lower end of the range, Deliveroo will be the largest tech IPO in Europe to date this year and the largest in the UK for a decade.
Deliveroo’s IPO is set to turn the company’s top shareholders into hundreds of millions. Some of them will outsource some of the IPO shares, but investors plan to hold most of them.
The single biggest winner will be Deliveroo CEO Will Shu. He owns 90,570,400 shares or 6.1% of the share capital. After the IPO, he will own 115,227,441 shares or 6.3% of the share capital. He will also have over 50% of the voting rights.
Assuming Deliveroo prices of £ 4.25 per share, the midpoint of the range, Shu’s stake will be valued at around £ 490 million after the IPO. It could go as high as £ 530million if prices are at the high end of the range, however.
Overall, Amazon will benefit the most from the IPO. After the IPO, the tech giant will hold an 11.5% stake (209,720,160 shares) in Deliveroo, which, depending on the price, will be worth around GBP 1 billion. The company currently holds 15.8% but plans to sell 23,302,240 shares for £ 90.8m to £ 107.2m depending on pricing.
Index Ventures, which also supported Facebook and Slack, now holds 150,889,000 shares or 10.2% share capital. If Deliveroo’s pricing is in the mid-range, the stake will be £ 641m at the time of going public.
Meanwhile, DST Global, which also supported UK Fintech Checkout, currently holds 148,676,600 shares or 10.1% share capital. If Deliveroo’s pricing is in the mid-range, the stake will be £ 632 million at the time of going public.
Both Index and DST Global plan to sell around 15 million shares for around £ 60 million.
Other VCs that will make big profits include Greenoaks, T. Rowe, and Fidelity, who each hold between 100 and 150 million shares. Your shares will be between £ 500 million and £ 600 million each at the time of the IPO, depending on the pricing. Meanwhile, Bridgepoint and Accel hold nearly £ 350m worth of shares when prices are in the middle of the range.
Deliveroo will be listed on April 7th. The stock ticker is currently unknown, but the options include “ROO” and “DROO”.
The company’s prospectus shows that Deliveroo’s revenue increased 54% in 2020 while its gross margin increased from 24% to 30%. However, Deliveroo still posted a full year loss of £ 224m.
It comes after U.S. rival DoorDash was valued at $ 60 billion in an initial public offering on the New York Stock Exchange in December. When it went public in 2016, Grubhub was valued at just $ 5 billion.