Food delivery company Deliveroo has chosen London for its initial public offering.
In a 4 March press release, the firm said that it is expecting to adopt a time-limited dual class share structure, common on exchanges in the US, Hong Kong and in Europe. A dual class share structure means founders can keep control of their companies, using shares with greater voting weight.
Deliveroo said its dual class share structure will be limited to three years, after which the company will move to a traditional single share class structure. The latest round of funding values the company at $7bn.
The announcement comes as Lord Hill’s review of the UK’s listing regime recommends a series of reforms aimed at making the country a more attractive destination for IPOs, including allowing dual class share structure on the London Stock Exchange’s premium segment. Under the current rules, companies with dual class structures can only be admitted to the LSE’s standard listing.
“Given the significant growth potential in the online food delivery sector, the company is considering a potential listing in London to help deliver its ambitious growth plans to become the definitive online food company,” the firm said in its statement.
The firm, set up by former Morgan Stanley banker Will Shu, said it has supported 46,700 jobs in the UK since launching in 2013.
“London is a great place to live, work, do business and eat,” said Shu, who first started making food deliveries on a bicycle in Chelsea, West London when he launched the company, in a statement. “That’s why I’m so proud and excited about a potential listing here.”
Chancellor Rishi Sunak also said it was “fantastic” that the food delivery giant had chosen to list on the London Stock Exchange. “It is great news that the next stage of their growth will be on the public markets in the UK,” Sunak added in Deliveroo’s statement.
The London Stock Exchange has had its strongest start to a year since 2006, with 11 IPOs raising £3.24bn in the year to 24 February, its data showed.
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