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Amazon’s stake in Deliveroo will fall to 11.5% following the group’s IPO, according to the IPO prospectus.
The fall represents a 4.3% decline from Amazon’s current 15.8% stake, as roughly 23.3 million shares are to be sold, raising between £90.87m and £107.18m.
This exit opportunity, alongside a dilution in its stake from the introduction of new shares, can be attributed to the fall in the group’s stake.
The prospectus showed that over 256.4 million new class A shares will be issued as the delivery company goes public, as well as 128.2 million existing class A shares.
Priced at between £3.90 and £4.60 per share, the IPO will give Deliveroo a market value of £7.6bn to £8.8bn.
An Amazon spokesperson said: “We congratulate Deliveroo on their IPO and can confirm that on completion of the IPO, Amazon will still own a large proportion of our pre-IPO minority stake.”
While current shareholders Index, DST, Greenoats, Bridgepoint, and Accel will also all see their stakes in Deliveroo reduced in a bid to raise cash, founder Will Shu will retain his 6.3% stake.
However, due to the company’s dual-class share structure, Shu will control 57.5% of the firm’s voting rights.
In a statement, Shu said: “We are proud to be listing in London, the city where Deliveroo started.
“Becoming a public company will enable us to continue to invest in innovation, developing new tech tools to support restaurants and grocers, providing riders with more work and extending choice for consumers, bringing them the food they love from more restaurants than ever before.”
