Deliveroo has revealed that its looming flotation in London will value the company at up to £8.8bn.
The food delivery app said on Monday that it had set a price range for its listing of between £3.90 and £4.60 per share.
The range reflects the prospect of a big appetite for shares in the company, which has benefited from high demand for takeaway meals during the COVID-19 pandemic as dine-in restaurants were forced to close.
In a short trading update that accompanied the pricing plan, Deliveroo said the total value of orders it received was up 121% in January and February this year compared to the same period in 2020.
Sky News revealed last night that chief executive Will Shu, who launched the company less than a decade ago, was likely to sell a small part of his 6.2% holding in the flotation.
An insider suggested it would give him his largest payday, worth millions of pounds, to date.
Deliveroo said the planned listing would consist of mainly new shares – aimed at raising up to £1bn to invest in the expansion of the business – and the sale of some shares by existing shareholders.
The company did not disclose a date but intends to operate a dual-class share structure for three years that will allow Mr Shu to retain control of the company under a proposed shake-up of City rules that has been backed by the government.