Wednesday 13 January 2021 8:42 pm

Deliveroo picks banks as it gears up for blockbuster float

Deliveroo is said to have tapped four investment banks as it prepares for a blockbuster float on the London Stock Exchange this year.

The food delivery app has hired Bank of America Merrill Lynch, Citi, Jefferies and Numis to work on an initial public offering that could value it at more than £5bn, Sky News reported.

Read more: Deliveroo to roll out to 100 new towns and cities in 2021

The quartet of banks will work under Goldman Sachs and JP Morgan, who are leading the listing. The float is expected to be launched in or around April.

Deliveroo recorded six months of profit last year thanks to a surge in demand during the coronavirus pandemic, and the platform will expand to 100 new UK towns and cities in 2021.

The bump in trading is expected to result in an upward revision of the target valuation for Deliveroo’s float.

Read more: Coronavirus helps Deliveroo take home profits in 2020

Bankers are now preparing to pitch a valuation of more than £5bn, with the price tag potentially rising as high as £8bn, according to the report.

If it goes ahead, Deliveroo’s IPO is expected to be one of the largest London debuts in 2021.

It is one of a number of tech firms eyeing up a London float this year after enjoying a revenue boost during the pandemic. Other potential new entries include Darktrace, Music Magpie and Moonpig.

In November Deliveroo hired former Premier League and Ocado director Claudia Arney as its first chair as it bolsters its executive team ahead of the listing.

The takeaway app, which is backed by Amazon, now has roughly 45,000 restaurants on its platform.

Read more: Deliveroo appoints new chair ahead of rumoured public listing

An initial public offering will provide a bumper payday for a number of other key investors, including private equity firm Bridgepoint and institutional investors Fidelity and T Rowe Price.

Deliveroo and Citi declined to comment. Bank of America Merrill Lynch, Jefferies and Numis have been contacted for comment.