The title of the food delivery platform Deliveroo fell sharply, a few hours after its IPO.
The price even tumbled briefly by more than 30% in the first hour of trading, and its high volatility led to a short suspension of the stock.
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Around 10:20 am, it fell 21% to 3.08 pounds, much less than the IPO price set at 3.90 pounds, when the company had already had to revise its ambitions down for this operation.
The stock market operation valued the company at 7.6 billion pounds while the group had initially hoped up to 8.8 billion.
Investors may prefer to sell the title, given the risks of a change in the status of delivery people, challenged in courts in several countries, and forced to evolve in others.
Especially since Deliveroo is not yet profitable, despite a year of pandemic and confinements favorable to e-commerce.
The operation has rekindled the debate on the precariousness of delivery men, who are self-employed, symbols of the “
gig economy
”, or the economy of odd jobs, and play a crucial role in the business model of digital platforms.
The British self-employed workers' union, the IWGB, is notably planning a strike action on April 7 in order to demand better working conditions.
Investors overwhelmingly subscribed to the transaction, but were not prepared to pay too much.
Some investors may have also been discouraged by the choice of founder and boss Will Shu to opt for a two-type share system for a period of three years in order to maintain control while selling part of the capital.
However, it was the most important operation since 2011 in London, which seeks to remain attractive in the face of increased competition from Europe with Brexit.
Uncertainties about the future
The company has put 21.3% of its capital on the stock market, allowing it to recover 1.5 billion pounds, including one billion through the issuance of new shares.
The supply could climb to 22.9% of the capital if investors wish to buy more shares.
Deliveroo, in which the giant Amazon held 16% of the capital before the operation, wants to use the money to finance its growth.
"
I am very proud that Deliveroo is going public in London, at home
," said Will Shu.
“
We will continue to invest in innovations that help restaurants and the grocery industry grow, provide customers with more choice than ever before and give delivery people more work,
” he added.
It will remain to be seen what Deliveroo's performance will be once the health restrictions are lifted, while its activity has been boosted by the pandemic.