Amazon-backed Deliveroo seeks valuation of up to $12 billion in its London IPO

Amazon-backed Deliveroo seeks valuation of up to $12 billion in its London IPO

LONDON “” British food delivery firm Deliveroo is seeking a valuation of up to £8.8 billion ($12.2 billion) in its upcoming initial public offering in London.

The company, which is backed by Amazon, set a price range of between £3.90 and £4.60 per share for its blockbuster IPO, implying an estimated market cap of between £7.6 billion and £8.8 billion.

Deliveroo's market debut is set to be one of the biggest U.K. listings in years. The company announced plans to IPO in London earlier this month, giving the U.K. capital a big win after Brexit as it aims to lure more high-growth tech companies.

A government-backed review urged reforms to London's listing regime, including the ability to list dual-class shares like those pioneered by the likes of Google and Facebook. Currently, firms are unable to do so on the premium segment of London's stock market, which prevents them from being eligible for inclusion in benchmarks like the FTSE 100.

Deliveroo has opted for a dual-class share structure that gives CEO and founder Will Shu enhanced voting rights. Shu will get 20 votes per share while other investors are entitled to only one. Deliveroo hopes to raise gross proceeds of £1 billion from its IPO.

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