Mar 25, 2021
Legal and General joins investors shunning Deliveroo IPO
A number of large institutional investors have voiced concerns around the proposed shareholder structure, which will give Deliveroo's founder enhanced voting power. M&G, Aberdeen Standard Investments and Aviva Investors, which collectively oversee more than £1tn in assets, have told the FT they will shun next week's listing, which is expected to be the UK's largest IPO in a decade. If the Deliveroo IPO goes as planned, Will Shu, co-founder and chief executive, will hold a stake worth about £500m and retain 57 per cent of the voting rights. Deliveroo posted a £224m loss last year despite order volumes growing by almost two-thirds as the coronavirus pandemic thrust food delivery into the spotlight. The company insisted that the growing investor concern would not derail its IPO. "Deliveroo has received very significant demand from institutions across the globe," the company said.
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