Chancellor Rishi Sunak’s budget included the completion of a review of listing rules designed to make it more attractive for businesses, particularly technology innovators to list on the London Stock Exchange. The changes provide listings with easier eligibility to join blue-chip FTSE indices, which attract wider investment than normal London exchange listings.
As the chancellor announced the changes, Deliveroo in a coordinated statement confirmed London as the preferred location for its £5 billion stock market listing.
Rishi Sunak signalled his intent to make London an even more attractive venue for stock market listings following the UK’s departure from the EU. Deliveroo have just delivered a huge vote of confidence in the chancellor through their decision.
In preparation of listing Deliveroo have brought in a big name non-executive director, Next CEO, Simon Wolfson. Deliveroo also saw Amazon acquire 16% of their shares pre listing.
Consumer demand for food delivery services grew substantially in 2020 as restaurants remained closed to visits from diners. As a consequence, adoption of the home delivery model by consumers and restaurants is now years ahead of where Deliveroo and other food delivery providers could even have dreamt of in 2019.
In 2019 Deliveroo reported losses of £320 million. Then 2020 saw the business more than double revenues and transfer that income to profitability.
Deliveroo’s founder is Will Shu who set up the business in classic internet entrepreneurial start up style. While working as an investment banker in 2013, Shu created and launched Deliveroo from his bedroom in London. Fast forward eight years and the business now works with more than 140,000 restaurants around the world.
The new listing rules make it not only more attractive for businesses to list in London but also technology entrepreneurs like Will Shu through allowing founders to retain greater control of their offspring.
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Hospitality & Catering News: Deliveroo backs the chancellor’s budget with £5 billion London listing. – 4 March 2021 – Deliveroo backs the chancellor’s budget with £5 billion London listing.
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