Deliveroo shares plunge 30% in London IPO

Deliveroo shares fell as much as 30% in the company’s highly anticipated London IPO on Wednesday, wiping out roughly £2.3 billion ($3.2 billion) in market value and dealing a blow to the city’s renewed efforts to attract tech company listings.

The stock was last trading at around £3.13 ($4.30), about 20% below the price at which the shares listed.

Deliveroo had set the IPO price at £3.90 ($5.36) per share, the bottom of the range it was targeting, citing choppy market conditions. At that price, the food delivery company was valued at £7.6 billion ($10.5 billion).

“Given volatile global market conditions for IPOs, Deliveroo is choosing to price responsibly within the initial range and at an entry point that maximises long-term value for our new institutional and retail investors,” the company said in a statement on Monday.

Several large institutional investors, including Aberdeen and BMO Global Asset Management, said last week that they would not participate in Deliveroo’s IPO because they had concerns about competition, regulation and the way the company treats its delivery riders.

Deliveroo said it had received “very significant demand from institutions across the globe” and that the order book was several times oversubscribed.

— This is a developing story and will be updated.