Sunak throws weight behind Deliveroo’s London listing

Rishi Sunak brands Deliveroo a ‘British tech success’ as the food delivery giant announces it has chosen London for its stock market debut

  • Deliveroo plans to make its stock market debut on the London Stock Exchange 
  • Sunak welcomes decision and calls Deliveroo ‘a true British tech success story’

Food delivery giant Deliveroo has plumped for London as the location of choice for its hotly anticipated multi-billion pound stock market debut.

The company said the move underlined its commitment to making Britain its ‘long-term home.’

Chancellor Rishi Sunak said: ‘The UK is one of the best places in the world to start, grow and list a business – and we’re determined to build on this reputation now we’ve left the EU.

Debut: Deliveroo plans to float on the London Stock Exchange, in a boost for the capital

‘That’s why 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.

‘Deliveroo has created thousands of jobs and is a true British tech success story.

‘It is great news that the next stage of their growth will be on the public markets in the UK.’

The announcement by Deliveroo came a day after Sunak endorsed recommendations for an easing of Britain’s strict stock market rules, which some believe have pushed big tech firms to list in places like Asia, Amsterdam or the US instead of London. 

While the new listing rules will not be launched in time for the Deliveroo float, the push to relax the listing regime appears to have been a crucial factor in its final decision to plump with London. 

''Deliveroo has created thousands of jobs and is a true British tech success story', Sunak said

”Deliveroo has created thousands of jobs and is a true British tech success story’, Sunak said

As part of the float in London, Deliveroo is planning a dual-class listing of shares in which Shu’s stock will have greater voting rights than outside shareholders. 

Deliveroo stressed the dual listed share system would only last for three years. 

Deliveroo boss Will Shu co-founded the business in London eight years ago and was its first rider when it began operating in the high-end area of Chelsea.

The company is now valued at over £5billion after recently securing fresh funding.   

Shu said: ‘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.

‘At Deliveroo we want to be the definitive food company, bringing consumers the best choice of foods, giving restaurants new opportunities to grow their businesses and providing riders with great work.

Co-founder: Deliveroo boss Will Shu co-founded the business in London eight years ago

Co-founder: Deliveroo boss Will Shu co-founded the business in London eight years ago

‘We are always focused on developing the best proposition for consumers, restaurants and riders, and look forward to bringing our service to new parts of the UK as we continue to grow.’

David Schwimmer, chief executive of the London Stock Exchange Group, said: ‘Deliveroo’s planned IPO on London Stock Exchange highlights the UK capital markets’ ability to support leading global tech companies.

‘London Stock Exchange is an increasingly attractive destination for high-growth founder-led businesses, enabling them to innovate, grow and create jobs. We look forward to welcoming Deliveroo.’

Less than a year ago, Deliveroo said it was on the brink of collapse, with Shu calling the pandemic a ‘unique and severe challenge.’ The group said it could only survive if it received funding from Amazon.

The Competition and Markets Authority was initially concerned that Deliveroo’s deal with Amazon would give the former too much clout in the takeaway market. The CMA changed its mind and gave the investment deal the green light in August last year.

Deliveroo’s float will follow those of other tech-focused firms including Moonpig, The Hut Group and, potentially, Trustpilot and Auction Technology Group.