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British food-delivery company Deliveroo has chosen London for its eagerly awaited initial public offering, in a boost to the city following a listing rules review published earlier this week.
The listing, which could value the Amazon -backed U.K. start-up at around $ 7 billion, will be seen as a win for London in its efforts to attract technology companies. The company gave no specific timeline for the IPO but it is expected to be in the first half of 2021.
Deliveroo, like many other takeout apps including Uber Eats and Just Eat Takeaway.com, has benefited from soaring demand throughout the Covid-19 pandemic as millions of people around the world have been forced to stay at home and restaurants have been closed. The company said 2020 was a “year of growth,” as it posted six months of operating profits and outlined plans to rapidly expand this year.
The IPO will be closely watched after U.S. meal delivery company DoorDash jumped 86% on its trading debut in December.
The London-based company, founded in 2013, operates in more than 800 towns and cities mostly in Western Europe but also in Hong Kong, Singapore, Australia and the United Arab Emirates. In May 2019, Amazon moved to buy a 16% stake in the company, a purchase that was approved following an investigation from the U.K. competition regulator in August last year. The company’s latest funding round in January, which raised $ 180 million from DoorDash-backers Durable Capital Partners and Fidelity, valued it at more than $ 7 billion.
by Ella Jones | Linkedin
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