British food delivery company Deliveroo confirms IPO plans, flags US$309 million loss in 2020
- The public listing in London is expected to value the British firm at around US$7 billion
- Deliveroo plans to use a dual-class share structure that will give co-founder Will Shu more control over the company
British food delivery company Deliveroo announced plans for its London listing on Monday, disclosing it had narrowed its underlying loss in 2020 to 223.7 million pounds (US$308.9 million).
Deliveroo’s listing is one of the most eagerly watched-for initial public offerings (IPOs) in the first half of 2021, and is expected to value the company at more than US$7 billion.
In a trading update alongside its IPO circular, the company said it had grown the total number of transactions processed on its online platform - the so-called gross transaction value (GTV) - by 64.3 per cent last year to 4.1 billion pounds, up from 2.5 billion pounds in 2019.
Over the same period, the company’s underlying gross profit rose 89.5 per cent to 357.5 million pounds from 188.7 million, pushing its underlying gross profit as a percentage of GTV to 8.8 per cent from 7.6 per cent.
The total underlying loss for the year narrowed to 223.7 million pounds, compared with 317.3 million pounds in 2019, it added.
As flagged last week, Deliveroo said it planned to use a dual-class share structure that will give co-founder and chief executive Will Shu more control over the company.
