Name: Amazon stands to win big on Deliveroo's IPO
Brand: cnbc.com
SKU: cnbc-com-386
Availability: OnlineOnly

critic

Amazon stands to win big on Deliveroo's IPO

preview

Key PointsLONDON — Deliveroo is planning to raise £1 billion ($1.38 billion) in its initial public offering next month when it is expected to debut on the London Stock Exchange.The food delivery service plans to offer up to 256,456,256 new shares at £3.90 to £4.60 per share, according to the , which was published Tuesday. Existing shareholders are also planning to sell up to 128,205,128 shares.The IPO will , which is higher than previous reports had suggested. Even at the lower end of the range, Deliveroo will still be the largest tech IPO in Europe so far this year and the largest in Britain for a decade.Deliveroo's IPO is set to make the company's top shareholders hundreds of millions. Some of them will offload some shares in the IPO but investors are planning to keep hold of most of them.The biggest individual winner will be Deliveroo CEO Will Shu. He owns 90,570,400 shares, or 6.1% of share capital. Following the IPO, he will own 115,227,441 shares, or 6.3% of share capital. He will also have over 50% of the voting rights.Assuming Deliveroo prices at £4.25 per share, the midpoint of the range, Shu's stake will be worth around £490 million after the IPO. It could, however, climb as high as £530 million if the pricing is at the top end of the range.Deliveroo CEO welcomes competition after restaurants try to outmaneuver his appOverall, stands to gain the most from the IPO. The tech giant will hold an 11.5% stake (209,720,160 shares) in Deliveroo after the IPO that will be worth around £1 billion depending on the pricing. It currently holds a 15.8% slice but it plans to sell 23,302,240 shares for anywhere between £90.8 million and £107.2 million, depending on pricing.Meanwhile, Index Ventures, which has also backed and , currently holds 150,889,000 shares, or 10.2% share capital. If Deliveroo prices at the mid-range then its stake will be worth £641 million at the time of the IPO.Meanwhile, DST Global, which has also backed U.K. fintech Checkout, currently holds 148,676,600 shares, or 10.1% share capital. If Deliveroo prices at the mid-range then its stake will be worth £632 million at the time of the IPO.Both Index and DST Global are planning to sell around 15 million shares for roughly £60 million.Other VCs set to win big include Greenoaks, T. Rowe and Fidelity, who hold between 100 million and 150 million shares each. Their stakes will be worth around £500 million to £600 million each at the time of the IPO, depending on the pricing. Meanwhile, Bridgepoint and Accel hold stakes that will be worth almost £350 million if pricing is at the mid-range.Deliveroo's listing will take place on April 7. The stock ticker is currently unknown but options include "ROO" and "DROO."The company's prospectus shows that Deliveroo's revenue was up 54% in 2020, while gross margin was up from 24% to 30%. However, Deliveroo still &nbsp;It comes after U.S. rival DoorDash was valued at $60 billion in an IPO on the New York Stock Exchange in December. Meanwhile, Grubhub was valued at just $5 billion when it went public in 2016.

Key PointsLONDON — Deliveroo is planning to raise £1 billion ($1.38 billion) in its initial public offering next month when it is expected to debut on the London Stock Exchange.The food delivery service plans to offer up to 256,456,256 new shares at £3.90 to £4.60 per share, according to the , which was published Tuesday. Existing shareholders are also planning to sell up to 128,205,128 shares.The IPO will , which is higher than previous reports had suggested. Even at the lower end of the range, Deliveroo will still be the largest tech IPO in Europe so far this year and the largest in...

public

Sam Shead

cnbc.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

Amazon stands to win big on Deliveroo's IPO

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS