Deliveroo debuts on the London Stock Exchange with a loud thud. At startup the title is collapsed by 30% compared to the placement price of £3,9. A figure that had already been set in the lower part of the price range (3,9-4,6 pounds) established at the time of the IPO, which however remains the largest listing in the City since the start of 2020. The placement raised £1,5 billion, for a market capitalization of £7,59 billion.
As the minutes went by, the shares recovered part of the ground lost at the start, even being temporarily suspended due to an excess of upside, and currently travel down 8,7%.
Investor doubts about Deliveroo are causing the collapse of Deliveroo shareholding structure and the treatment of workers. The two share classes are the first to worry about, while the second is affected by fears relating to sustainability. The fair treatment of workers is in fact at the heart of the new sustainability policies of most companies, but the working conditions of riders continue to be the focus of controversy and protests. A riders' strike has been called in London for next Easter Sunday and in France on 7 April.
It should also be considered that the funds have expressed concern about the fact that Will Shu, CEO and founder of Deliveroo, will remain the company's reference shareholder for the next three years, benefiting from a vote increased twenty times. In fact, the prospectus states that Amazon, which owns Class A shares, will drop from 15,8 to 11,5% with voting rights at 5,2%, while Shu, the only holder of Class B shares, will rise from 6,1 to 6,3% of the capital, with 57,5% voting rights.
“In recent weeks – points out Radiocor – the sector has lost its edge compared to the home delivery boom that coincided with the lockdowns to counter the Covid 19 pandemic, also in light of the acceleration of vaccination campaigns and the prospect of an easing of restrictions in many countries".
“I am very proud that Deliveroo is listing in London, our home,” he said CEO and founder Will Shu, adding that the listing is a "milestone" and opens a "new phase" in the history of the company which intends to "invest in innovation" to be able to support restaurants and supermarkets to grow their business and offer customers more choice .
