London- On Thursday, British food delivery start-up Deliveroo announced its plan to starts its emergence in London. Well, the firm is backed by Amazon which soon is expected to go public. In this competitive market, this went almost near failure in 2020. This initiative gains its profitability almost towards the end of the year because of coronavirus lockdown-driven surge in demand for online takeout services.
Well, for the market debut, Deliveroo mentioned they will adapt the dual-class share structure for their market. It will give its CEO and founder Will Shu enhanced voting rights and complete control over the direction of the company. However, it came after the government-backed feedback which is known for reform to London’s listing regime that involves the capability to list the dual-class shares initiated by Facebook and Google.
Notably, in the case of Deliveroo, the dual-class structure will be restricted to only three years which will be followed by a shift to a traditional single-class share structure.
On Thursday, Shu mentioned, “Deliveroo was born in London.” He also added, “This is where I founded the company and delivered our first order. London is a great place to live, work, do business and eat. That’s why I’m so proud and excited about a potential listing here.”
This news acts as a boon in the London stock market. It seems that this will attract more tech firms for competing with the European Union and New York. In the last month, Amsterdam mentioned London as the biggest share trading capital in Europe.
The British Finance Minister Rishi Sunak said, “The U.K. is one of the best places in the world to start, grow and list a business — and we’re determined to build on this reputation now we’ve left the EU. That’s why we are looking at reforms to encourage even more high growth, dynamic businesses to list in the U.K.”
Sunak added, “Deliveroo has created thousands of jobs and is a true British tech success story. It is great news that the next stage of their growth will be on the public markets in the U.K.”
Yet Deliveroo hasn’t declared its pricing information in the preliminary public offering. Recently, it raised $180 million in fresh funding at a $7 billion valuation. Along with Amazon, Deliveroo also is backed by Durable Capital Partners, Fidelity, T. Rowe Price, General Catalyst, Index Ventures, and Accel.
The chair of lobbying group Tech Nation, Stephen Kelly said “This is an important boost for U.K. tech. With seven new unicorns created in 2020 alone, the U.K. now has a total of 80 scaleups valued at more than £1 billion.”
Kelly added, “That is more than twice as many unicorns as Germany and France. We expect to see more of our home-grown success stories following suit in what is just the start of a golden age for U.K. tech.”
However, there are several other firms that have rumored to be exploring London Listing, which involves fintech startup Wise and cybersecurity company Darktrace. Notably, on Monday, Danish reviewed the website Trustpilot made the announcement that it was considering launching an IPO in London.