Deliveroo shares falls 23% on London stock market launch

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