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Tag: Deliveroo

Deliveroo bankers face cancellation of £18m fee after IPO calamity

Deliveroo bankers face cancellation of £18m fee after IPO calamity

Business
The board of Deliveroo is facing demands from the company's new shareholders to cancel an £18m payout to the investment banks which this week launched one of the City's most turbulent flotations on record.Sky News can reveal that a number of furious investors want the company to decide "at the earliest opportunity" that it will not hand the discretionary fee to its banking syndicate, led by Goldman Sachs. Deliveroo's listing prospectus disclosed that it would pay the six banks involved in its initial public offering (IPO) a fixed fee of 1.66% of the capital raised in the flotation - equating to £27.5m. Please use Chrome browser for a more accessible video player ...
Deliveroo flotation price to be at bottom of target range

Deliveroo flotation price to be at bottom of target range

Business
PA MediaFood delivery business Deliveroo has said it will price shares for its stock market listing towards the bottom of its planned range.Deliveroo now expects to be valued at between £7.6bn and £7.85bn, whereas its original price range had indicated it could be valued at up to £8.8bn.It said it had chosen the lower price due to "volatile" market conditions.Last week, a number of fund managers said they would reject the listing amid concerns over workers' rights.'Significant demand'Deliveroo's planned share sale has attracted much attention as it could be the UK's biggest flotation for a decade.Last week, the company estimated a price range of between £3.90 and £4.60 per share for the float on Wednesday.However, on Monday it trimmed the price range to between £3.90 and £4.10 per share.In...
Deliveroo boss Will Shu: ‘I was never into start-ups’

Deliveroo boss Will Shu: ‘I was never into start-ups’

Business
Getty Images"I never set out to be a founder or a CEO. I was never into start-ups," says Will Shu, founder of food delivery chain, Deliveroo.His comments came as the firm set out plans to issue shares to the public which could value it at about £7bn.Deliveroo has not yet made a profit and it reported a £223.7m loss for last year, despite a surge in sales.The float will see the busiest riders share in a £16m fund, and customers will also get the chance to buy shares. Deliveroo is making £50m worth of shares available to customers who will be given the opportunity to buy up to £1,000 worth of shares each, although if demand if high they may see their orders scaled back.Mr Shu's letter, contained in the official notice of the intention to float, also says: "I'm not one of those Silicon Valle...

Amazon-backed food delivery firm Deliveroo picks London for its blockbuster debut

Finance
A Deliveroo courier rides along Regent Street delivering takeaway food in central London during Covid-19 Tier 4 restrictions.Pietro Recchia | SOPA Images | LightRocket via Getty ImagesLONDON — British food delivery start-up Deliveroo announced Thursday that it plans to list in London, in a post-Brexit boost for the City.The firm, which is backed by Amazon, is expected to go public later this year. It went from near failure in 2020 amid a competition review into Amazon's minority investment, to operating profitability toward the end of the year thanks to the coronavirus lockdown-driven surge in demand for online takeout services. Amazon's stake in Deliveroo was greenlit by the regulator last summer.Deliveroo said it would adopt a dual-class share structure for its market debut, giving its f...
Amazon investment in Deliveroo faces in-depth inquiry

Amazon investment in Deliveroo faces in-depth inquiry

Business
Amazon's planned investment in Deliveroo, which includes a minority stake in the online food courier, has moved a step closer to being potentially blocked by a UK regulator.The Competition and Markets Authority (CMA) had given the companies five days earlier this month to address its concerns that the deal could lead to customers and businesses facing higher prices and poorer service. But the watchdog said in a statement on Friday that it had received no undertakings from the pair and it was to begin a so-called phase two inquiry. Image: The CMA has previously blocked a planned merger between Asda and Sainsbury's Such an investigation can last for months and could ultimately recommend the deal is blocked.It was the result of a £450m f...