Deliveroo shares falls 23% on London stock market launch
- Date: 31-Mar-2021
- Source: Kuwait Times
- Sector:Financial Markets
- Country:Kuwait
Deliveroo shares falls 23% on London stock market launch
LONDON: Deliveroo shares slumped 23 percent as it launched on the London stock market yesterday, with the app-driven meals delivery group facing criticism over its treatment of riders. The Deliveroo IPO was London's biggest stock market launch for a decade, valuing the group at £7.6 billion ($10.4 billion, 8.9 billion euros), after the eight-year-old British company enjoyed surging sales during the coronavirus pandemic as locked-down people ordered in.
Deliveroo said earlier this week that it had seen "very significant demand from institutions across the globe“, but some asset management firms decided against buying any shares, citing the job insecurity and conditions of its riders. It skidded on its market debut, with shares plunging to £3.02 after an initial public offering of £3.90 pence.
Trading opened down 15 percent before institutional investors-the first allowed to buy and sell Deliveroo shares-pushed down its price further. Deliveroo is selling just over one-fifth of the group, while the general public can start trading in its shares from April 7.
"I am very proud that Deliveroo is going public in London-our home,“ founder and chief executive Will Shu said in a statement ahead of the start of trading. "In this next phase of our journey as a public