Deliveroo picks London for multi-billion pound listing

Deliveroo has confirmed it will choose London for its long-awaited IPO.

The delivery firm will list with a dual-class share structure in what will be a major boost for the capital.

It is expected to be the largest float in London this year.

It comes just a day after a Treasury-commissioned review by former EU commissioner Lord Hill recommended an overhaul of London’s listing rules in a bid to remain competitive after Brexit.

In line with the review Deliveroo’s float is expected to include a time-limited dual-class share structure “to ensure stable execution of management’s strategy”.

Dual-class share structures are favoured by founders given they allow enhanced voting rights on some decisions for directors.

Deliveroo had a stellar year as consumers turned to the takeaway app as their favourite restaurants and pubs were forced to close their doors due to lockdown. 

The tech giant said it has been profitable for over six months at the operating level over the course of 2020.

Deliveroo, which said it has supported 47,000 jobs in the UK since its launch in 2013, said it has “ambitious plans” which includes the expansion of its Editions delivery-only kitchens as well as extending its subscription service.

Deliveroo’s intention to float will be considered an endorsement of London as a tech hub in the face of growing competition from other European cities and the US.

There has been concern that some of the country’s best firms are looking stateside due to regulatory conditions.

The Kalifa review of the fintech industry, published last week, also recommended the introduction of weighted voting rights saying it would be “particularly attractive” to founders.

“Deliveroo’s planned IPO on London Stock Exchange highlights the UK capital markets’ ability to support leading global tech companies,” the chief executive of the London Stock Exchange David Schwimmer said.

“London Stock Exchange is an increasingly attractive destination for high-growth founder-led businesses, enabling them to innovate, grow and create jobs.  We look forward to welcoming Deliveroo.”

Deliveroo’s intention to float follows bumper listings from Dr Martens and Moonpig, with Trustpilot soon to follow.