HomeBusiness NewsBusinessBusiness GrowthDeliveroo shares plummet after listing on the London Stock Exchange

Deliveroo shares plummet after listing on the London Stock Exchange

by LLB Finance Reporter
31st Mar 21 11:57 am

In the first 20 minutes of Deliveroo listing on the London Stock Exchange the company lost £2bn as share price plummeted by 30%.

Deliveroo was originally valued at £7.6bn and within the first 20 minutes of trading shares fell to 271p below the target of 390p.

Last week Aberdeen Standard and Aviva Investors who both manage more than £800bn of money said they are not investing due to the company’s labour practices.

Canadian BMO Global Asset Management firm who manage £692bn in assets have also said they will not invest as a result of the working conditions for riders and how little they get paid.

Deliveroo’s biggest investor, Amazon sold some £91m in shares in the IPO and the company still raised £1.5bn in share capital.

This has given investors a £500m windfall which also gives Deliveroo over £1bn to invest in new “growth initiatives.”

Deliveroo’s chief executive Will Shu made around £26m and said, “I am very proud that Deliveroo is going public in London, our home. Our aim is to build the definitive online food company and we’re very excited about the future ahead.”

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