Food-delivery company Deliveroo is seeking to raise 1 billion pounds ($1.4 billion) in a London stock market listing, buoyed by a rise in demand for its services during lockdowns. Besides the 1 billion pounds of new stock, existing investors plan to sell shares, Deliveroo said in a statement Monday, without providing details. Deliveroo, whose backers include Inc., was valued at more than $7 billion in a January funding round.

Deliveroo will list with a dual-class share structure that will give founder and Chief Executive Officer Will Shu voting control for three years. As such, the stock is confined to the London Stock Exchange’s standard segment and can’t be included in benchmark indexes such as the FTSE 100, despite its expected size.

The sale is part of a global surge in equity capital markets as the economy rebounds from the coronavirus pandemic thanks to ultra-low interest rates, government stimulus and the arrival of vaccines. The U.K. is headed for its biggest-ever first quarter for initial public offerings.


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Source: BNN Bloomberg

By Swetha Gopinath