Deliveroo shares tumble in London debut By Reuters

LONDON (Reuters) – Shares in Deliveroo opened well below the price of their initial public offering on Wednesday, and fell as much as 30% to 275 pence after making one of the most anticipated London stock market listings.

The 390 pence price tag gave an overall valuation of 7.6 billion pounds ($10.46 billion) for the company, less than initially expected, after a string of major UK fund managers said they would not take part, citing concerns about its dual class share structure and its gig economy business model.

Deliveroo’s self-employed drivers have seen a boom in demand during the COVID-19 pandemic, bringing food from otherwise-shuttered restaurants to housebound customers.

The listing of London-based company, founded by boss William Shu in 2013, is London’s biggest IPO since Glencore (LON:GLEN)’s in May 2011 and also the biggest tech float on the London Stock Exchange.