Deliveroo: Chancellor Rishi Sunak hails 'British tech success' as food delivery firm confirms London IPO pick

The takeaway delivery company confirmed its widely-expected decision to choose London for its expected stock market flotation.

Thursday 4 March 2021 09:07, UK

Deliveroo
Image: Deliveroo operates in hundreds of towns and cities across the world
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Chancellor Rishi Sunak has welcomed confirmation by Deliveroo that its highly-anticipated potential stock market float will take place in London.

The takeaway delivery company plans to make use of reforms announced this week allowing a "dual class" listing structure enabling founders to retain greater control even after their firms go public.

Sky News revealed last month that Deliveroo has pencilled in next Monday to as the date at which it will fire the formal starting gun on its intention to float.

General view of the London skyline, as seen from One Tree Hill, showing skyscrapers in the City financial district 52 Lime Street (also known as the Scalpel), and 30 St Mary Axe (also known as the Gherkin). PA Photo. Picture date: Tuesday February 4, 2020. Photo credit should read: Dominic Lipinski/PA Wire
Image: The government wants to attract more high growth tech firms to the City

The widely-expected deal will bring to market a company which, since it was founded in London in 2013, has become one of Britain's most valuable tech businesses, with a likely market value of up to £7.5bn.

It currently operates in more than 800 towns and cities in 12 markets across the world, from Australia and Hong Kong to Belgium and Spain.

Mr Sunak hailed Deliveroo as a "true British tech success story", saying: "We are looking at reforms to encourage even more high growth, dynamic businesses to list in the UK.

"So it's fantastic that Deliveroo has taken this decision to list on the London Stock Exchange."

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Founder Will Shu said: "Deliveroo was born in London. This is where I founded the company and delivered our first order.

"London is a great place to live, work, do business and eat. That's why I'm so proud and excited about a potential listing here."

Chancellor Rishi Sunak
Image: Mr Sunak hailed the company as a British success story

Deliveroo has seen demand soar during the pandemic as hundreds of restaurants across the UK sought to join its platform after sites were closed to dine-in customers.

It said its float plans were expected to include a time-limited dual-class share structure closely in line with the findings of a review published this week by Lord Hill, which was set up with the intention of attracting more high growth tech companies to the City.

The structure would involve two different classes of shares with different voting rights allowing founders greater control over big decisions.