Deliveroo chooses London for £7.5bn stock market listing

Deliveroo has experienced soaring during the pandemic

(Getty Images)

Deliveroo has chosen London as the venue for its planned stock market listing just eight years after the food delivery app was founded in the city.

Chief executive Will Shu was Deliveroo's first rider and is now reportedly targeting a valuation of as much as £7.5bn for the company he co-founded.

Deliveroo said its plans to go public in London underlines its commitment to make the UK its "long-term home".

Rishi Sunak was quick to take credit for attracting Deliveroo's proposed share sale. The chancellor is seeking to implement the findings of a review into stock market listing rules that would allow founders of fast-growing startups to keep control after selling shares to investors.

Deliveroo said on Thursday that it plans to use a dual-class share structure, meaning that founders keep more voting rights and control over important decisions.

Mr Sunak said: "The UK is one of the best places in the world to start, grow and list a business – and we're determined to build on this reputation now we've left the EU.

"That's why we are looking at reforms to encourage even more high growth, dynamic businesses to list in the UK.

"It's fantastic that Deliveroo has taken this decision to list on the London Stock Exchange."

Watch: Deliveroo plans $7 bln London share listing

Deliveroo has experienced soaring sales during the pandemic as people have been confined to their homes and restaurants' premises closed to customers.

Mr Shu said: "London is a great place to live, work, do business and eat.

"That's why I'm so proud and excited about a potential listing here.

"At Deliveroo we want to be the definitive food company, bringing consumers the best choice of foods, giving restaurants new opportunities to grow their businesses and providing riders with great work.

"We are always focused on developing the best proposition for consumers, restaurants and riders, and look forward to bringing our service to new parts of the UK as we continue to grow."

London has been chosen for a series of technology company flotations this year, including cards retailer Moonpig.

David Schwimmer, chief executive officer of the London Stock Exchange Group, said: "Deliveroo's planned IPO on [the] London Stock Exchange highlights the UK capital markets' ability to support leading global tech companies.

"London Stock Exchange is an increasingly attractive destination for high-growth founder-led businesses, enabling them to innovate, grow and create jobs. We look forward to welcoming Deliveroo."

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