Online food takeaway start-up Delivery Hero plans to raise nearly €1bn from its initial public offering later this month, which will value the company at €4.39bn.
The company said in a statement that it would sell up to 39m shares, priced between €22-€25.50 per share. It’s the fourth float by a major online food delivery firm in recent years, following IPOs by GrubHub, Just Eat and Takeaway.com. Delivery Hero said it would use the proceeds to repay loans and finance the growth and development of its business.
The offering will consist of nearly 19m shares from a capital increase. Fifteen million will come from existing shareholders, including Rocket Internet, the Berlin-based tech investor. A further 5m indirectly held by Rocket may also be placed with investors in an over-allotment, the company said.
At the mid-point of the price range, gross proceeds from the IPO would amount to about €450m. Assuming full placement of all offered shares at the mid-point, the total size of the offering will amount to about €927m, the company said. The shares are expected to start trading on the Frankfurt Stock Exchange on June 30.
The Delivery Hero IPO is good news for Rocket, marking the first time any of the companies it has invested in has been floated since its own IPO in September 2014. Its shares have slumped since then amid investor concerns about continuing losses at its companies and controversy over the way it values its stakes in its start-ups.