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Deliveroo announced today that it has an estimated market capitalisation of between S$14.1 billion and S$16.3 billion for its potential IPO.

Jae Chia  |  SG
Published 2021-03-08 11:19:34
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[Article updated 22 March, 3:45PM]

Deliveroo announced today (March 22) that it has an estimated market capitalisation of between £7.6 billion (S$14.1 billion) and £8.8 billion (S$16.3 billion) for its possible upcoming IPO.

The price range for the Offer has been set at £3.90 (S$5.58) to £4.60 (S$8.55) per share.

According to a press release by the company, it will apply for admission of shares on the standard listing segment of the Official List of the FCA and to trading on the main market of the London Stock Exchange.

It also said that the total amount of transactions it processes on its platform has grown 121 per cent year-on-year at the group level in January and February 2021.

Earlier this month, Deliveroo revealed a strong financial and operating performance for 2020 ahead of its intended listing on the London Stock Exchange.

Becoming a public company will enable us to continue to invest in innovation, developing new tech tools to support restaurants and grocers, providing riders with more work and extending choice for consumers, bringing them the food they love from more restaurants than ever before. This will help us in our mission to become the definitive food company. We have enjoyed a strong start to 2021 and we are only at the start of an exciting journey in a large, fast-growing online food delivery market, with a huge opportunity ahead.

Will Shu, Founder and CEO of Deliveroo

Over the course of 2020, the total amount of transactions processed on the company’s platform grew by 64 per cent, from £2.5 billion (S$4.65 billion) in 2019 to £4.1 billion (S$7.63 billion).

The delivery giant also saw underlying gross profit increase 89.5 per cent to £358 million (S$666.13 million) from £189m (S$351.67 million) the previous year. 

Furthermore, Deliveroo announced on Sunday (March 7) that it is setting aside £16 million (S$29.77 million) as part of a Thank You Fund for its delivery riders globally.

The Thank You Fund is slated to be launched on the day of Deliveroo’s initial public offering (IPO), and will be available to active riders in all 12 markets in which Deliveroo operates.

The food delivery giant aims to recognise the invaluable role that riders have played in the  journey to an expected listing via the multi-million dollar fund.

Riders are at the heart of our business, and we want to reward their efforts that have helped Deliveroo become what it is today. Their commitment to great service has enabled us to grow and offer the best food delivery experience in the world.

Will Shu, Founder and CEO of Deliveroo

How To Know If You Are An Eligible Rider?

Deliveroo rider
ImageCredit: MLR Institute

Riders will be eligible for the payout if they have worked with Deliveroo for at least one year and completed 2,000 orders.

The amount will differ based on the number of orders they have delivered — from a minimum S$370, to S$925, to S$1,850, to the highest payout of S$18,500.

The largest payments will be made to those riders who have completed the  highest number of orders in each market.

According to Deliveroo, the percentage of riders eligible for each of the different awards will be consistent across all markets.

The average payment per eligible rider will be S$815, and over one-quarter of Deliveroo’s global rider fleet — or 36,000 riders — are expected to benefit from the scheme.

“Over the last year, riders have helped us do so much more than just deliver great food, having supported businesses and enabled vulnerable people or those self-isolating to stay safe indoors throughout a global pandemic. We’re pleased to be able to say thank you,” said Deliveroo founder and CEO Will Shu.   

Back in 2018, Deliveroo announced that it would make all its permanent staff shareholders in the company as a way to thank its staff.

This move, worth nearly £10 million (S$18 million), meant that the majority of the 2,000 permanent staff at Deliveroo, globally, were given share options in the company.

Featured Image Credit: Retail News Asia

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