By: The Guardian
March 29, 2021
Deliveroo has cut the upper valuation of its landmark flotation on Wednesday by £1bn, saying it will price its shares at the bottom of its guided range because of “volatile” market conditions.
The London stock market listing will now value the takeaway delivery firm at £7.6bn-£7.85bn, instead of a potential £8.8bn, after a week in which leading fund managers said they would shun Deliveroo amid concerns over workers’ rights.
Although the listing is still expected to be London’s biggest float for a decade, Legal & General and other investors highlighted the potential for state intervention in the gig economy to affect Deliveroo’s business model.