‘A side of shares’: Deliveroo to offer £50m of stock to customers
Written by Hit Music Radio News on 07/03/2021
Deliveroo customers will be offered up to £50m of shares in the company’s blockbuster floatation, with the offer branded “Great food with a side of shares”.
The restaurant and grocery delivery app will list its shares in London on Monday with a potential value of £7.5bn, making it the biggest market debut in Britain for three years.
Founder and chief executive Will Shu said Deliveroo‘s customers had supported the firm’s growth and he wanted to give them the chance to share in the next stage of its journey.
“Far too often, normal people are locked out of IPOs, and the only participants are the institutional investors,” he said.
“I wanted to give as many customers as possible the chance to become shareholders, which is why we’re making £50m of shares available to them, alongside our restaurant partners and riders.”
Deliveroo said any customer who had placed an order would be able to register their interest via the company’s app from Monday.
Each would be able to apply for up to £1,000 of shares, it said, adding that loyal customers would be prioritised if the offer were oversubscribed.
Russ Mould, investment director at online platform AJ Bell, said a year of lockdowns had fuelled demand for companies like Deliveroo and there was an expectation that habits formed during the pandemic would remain long into the recovery.
“All this suggests there is likely to be a bun fight for the £50m worth of customer shares in Deliveroo at the IPO offer,” he said.
Deliveroo said it would also recognise the role played by its delivery riders in its success with a £16m reward programme to be launched on the day of listing.
Cash rewards from £10,000 to £200 will be available to riders in Deliveroo’s 21 markets based on the number of orders delivered.
The Amazon-backed company will also distribute a £50m funding pot to restaurants, riders and community groups.
The five-year pot of money will be earmarked for grants to restaurants to assist them with the cost of reopening after the nationwide lockdown, delivering meals to vulnerable groups and helping its army of riders access affordable electric bikes.
© Sky News 2020