Deliveroo Shaves $1.3 Billion Off Value as Investors Revolt
- Startup narrows range to 3.90 pounds to 4.10 pounds a share
- Deliveroo is facing backlash from certain U.K. funds, riders
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Food-delivery startup Deliveroo Holdings Plc cut the upper valuation target in its London initial public offering by about 950 million pounds ($1.3 billion), after some institutional investors balked at the company’s treatment of riders.
Deliveroo set new guidance of 3.90 pounds to 4.10 pounds a share, according to deal terms seen by Bloomberg. The company initially marketed the offering at 3.90 pounds to 4.60 pounds, valuing it at as much as 8.8 billion pounds. A Deliveroo spokesperson said the adjustment lowered the top end of the valuation target to 7.85 billion pounds.