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Here’s who stands to get rich from Deliveroo’s IPO

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Deliveroo CEO Will Shu.

Aurelien Morissard | IP3 | Getty Images

LONDON — Deliveroo is planning to raise GBP1 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 GBP3.90 to GBP4.60 per share, according to the company’s prospectus, which was published Tuesday. Existing shareholders are also planning to sell up to 128,205,128 shares.

The IPO will value the company between GBP7.6 billion and GBP8.8 billion, 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. 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 GBP4.25 per share, the midpoint of the range, Shu’s stake will be worth around GBP490 million. It could, however, climb as high as GBP530 million if the pricing is at the top end of the range.

Overall, Amazon 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 GBP1 billion depending on the pricing. It currently holds a 15.8% but it plans to sell 23,302,240 shares for anywhere between GBP90.8 million and GBP107.2 million, depending on pricing.

Meanwhile, Index Ventures, which has also backed Facebook and Slack, will be left with a 7.5% stake of around GBP577 million if it prices at the mid-range, while DST Global, which has also backed U.K. fintech Checkout, will be left with a 7.4% stake worth GBP569 million. Both firms are planning to sell around 15 million shares for roughly GBP60 million.

Other VCs set to win big include Greenoaks, T. Rowe and Fidelity, who will also hold stakes of around GBP450 million to GBP500 million each. Meanwhile, Bridgepoint and Accel will hold stakes of around GBP300 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 posted a full-year loss of GBP224 million.

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.

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