Amazon-Backed Deliveroo to Price IPO at Lower End of Range

LONDON—Deliveroo, the Amazon -backed on-line food-delivery service, stated it could worth its preliminary public providing at the decrease finish of expectations, signaling a extra cautious stance whilst demand has surged in the course of the pandemic.

The U.Okay.-based firm stated Monday it intends to worth its shares between £3.90 and £4.10, suggesting a valuation of between £7.56 billion and £7.95 billion, equal to about $10.5 billion and $11 billion. It had beforehand stated they might promote for as a lot as £4.60. The inventory is ready to begin buying and selling in London on Wednesday beneath the ticker ROO.

The firm stated it had obtained vital demand for the providing however that “given volatile global market conditions for IPOs,” promoting shares at the decrease finish of its preliminary vary would supply higher long-term worth for traders.

Deliveroo’s IPO is the most recent take a look at of traders’ urge for food for a extremely aggressive trade however one which has benefited from extra in-home ordering in the course of the pandemic. U.S. peer DoorDash Inc. went public in December in New York.

Deliveroo already counts Amazon as its largest shareholder after the e-commerce big acquired a 16% stake in 2019 in a deal that valued the startup at $3.5 billion.

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