Deliveroo share price plunges 28 per cent, wiping £2bn off company value
Deliveroo’s shares plunged 28 per cent when trading began on Wednesday, wiping £2bn off the company’s valuation within minutes.
The food delivery app saw its share price tumble from 390p to 280p after listing on the London Stock Exchange for the first time.
Deliveroo had already cut its top-end valuation by £1.2bn before the shares went on sale in the most anticipated initial public offering in London for a decade.
It came after a string of large fund managers shunned the company, citing concerns over workers’ rights. Investors had also raised concerns about a dual-class share structure that would allow founder Will Shu to keep control over the company.
Before trading began Mr Shu said: “I am very proud that Deliveroo is going public in London – our home.
“As we reach this milestone I want to thank everyone who has helped to build Deliveroo into the company it is today – in particular our restaurants and grocers, riders and customers.
“In this next phase of our journey as a public company we will continue to invest in the innovations that help restaurants and grocers to grow their businesses, to bring customers more choice than ever before, and to provide riders with more work. Our aim is to build the definitive online food company and we’re very excited about the future ahead.”
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