Deliveroo shares are trading up to 30 percent when the company made its long-awaited public debut on the London Stock Exchange

The delivery company’s shares fell from the offer price of 390 pence per share to below 300 pence per share, bringing the valuation by more than 2 billion GBP impaired

The offer price is at the lower end of Deliveroo’s price range after a number of fund managers stated they would not be in the deal due to concerns about the company’s profitability

In addition, concerns about the working conditions for its drivers have been cited as one of the reasons investors gave Deliveroo the cold shoulder

Even with the revised £ 76 billion valuation, London’s largest initial public offering since Glencore went public in 2011, there have been concerns that the company, which has not turned a profit, is still overvalued

“This reflects the fact that, even when pricing the IPO at the low end of the range, Deliveroo was asking too high a price for a loss-making delivery platform in a very competitive environment with a questionable path to profitability – the books were covered, it was easy.” a wrong price, ”said Neil Wilson, Chief Markets Analyst at Marketscom said

Deliveroo has sold shares worth £ 1.5 billion when it went public, generating gross proceeds of 1 billion GBP, with which the company particularly wanted to promote the growth of its edition delivery kitchens

Deliveroo share price

World news – GB – Deliveroo shares fall 30 percent in the long-awaited stock market debut

Source: https://www.cityam.com/deliveroo-gears-up-for-long-awaited-stock-market-debut/