Online takeway service Just-Eat eyes £900m float



Just-Eat considering selling only 10pc of business on LSE's new growth platform

Online takeaway service Just-Eat has bolstered its advisers as it prepares to become the first company to take advantage of the London Stock Exchange (Other OTC: LDNXF - news) ’s new high growth platform.

The venture capital-backed company, which is planning an initial public offering (IPO) of as much as £900m, has hired Barclays (LSE: BARC.L - news) to talk to potential investors.

JP Morgan (Other OTC: JPYYL - news) and Goldman Sachs (NYSE: GS-PB - news) are already advising the company and its shareholders on a listing.

The Sunday Telegraph understands that Just-Eat’s shareholders are considering selling only 10pc of the business, which would be possible if it listed via the LSE’s new segment, designed to lure British technology companies to list in London rather than New York (Frankfurt: HX6.F - news) .

The LSE launched the High Growth segment last year. The platform allows companies to float on the main market with a 10pc freefloat than the normal 25pc requirement. The British bourse admitted it was an attempt to attract UK technology companies who normally seek a New York listing. However, as yet no companies have used the platform.

Just-Eat is backed by venture capital firms Vitruvian Partners, Index Ventures, Greylock Partners and Redpoint Ventures.

In addition to the UK it operates in some 13 countries including Brazil, Canada, Denmark and France.

Sources say no final decision has been taken as to whether to use the High Growth segment but the new rules would be advantageous for the company, which is eyeing a pre-summer flotation.

Any float will mean a huge windfall for the takeaway company’s chief executive, David Buttress, who joined from drinks giant Coca-Cola in 2006, and founder Klaus Nyengaard.

In the year to December 2012, Just-Eat’s UK arm made profits of £9m on sales of £41.4 m, up from £2.1m on sales of £21.6m in 2011.

The company is rumoured to have a valuation of £900m, but in the City questions have been raised as to whether the company is worth as much as that, based on profitability.


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