Unfortunate news for Deliveroo — it was forced to trim down the value of its upcoming London IPO by $1.3b! Don’t feel too sorry for them, though, as the delivery app is still set to be the biggest stock market debut in the city in about a decade.
The company is now aiming for the lower-end of its earlier target for its upcoming IPO — between £7.6-7.8b (around $10.5-10.8b). The previous market cap target was up to £8.8b.
Deliveroo claims this is due to market volatility, but some argue it may be due to investor apprehension toward the company. See, though its sales may have been through the roof throughout the pandemic, it has faced criticism over the treatment of its freelance drivers (let’s face it, no investor wants more protests at Trafalgar Square!).