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Delivery Hero unveils IPO terms
Posted on Monday, 19 June 2017 11:20
German online food delivery service Delivery Hero intends to raise around EUR 927.00 million via its initial public offering (IPO) on the Frankfurt Stock Exchange.
The company announced details of the flotation, saying it will issue up to 39.00 million shares at between EUR 22.00 and EUR 25.50 each.
Around 18.95 million of these stocks will be sold via a capital increase transaction, while 15.00 million will come from existing investors.
The offer terms must be approved by the German Federal Financial Supervisory Authority and Delivery Hero is expected to be admitted to trading on 30th June.
Proceeds of the transaction will be used for the repayment of loans and financing the company’s ongoing growth and development.
Delivery Hero was first linked with a flotation as far back as April 2014, when TechCrunch reported that the firm could be looking to go public.
Earlier this month the group confirmed it planned to list at some point this year.
At the time chief executive Niklas Östberg said the move would enable the company to expand its leadership position in the online food ordering and delivery market.
Berlin-headquartered Delivery Hero employs over 6,000 people.
Founded in 2011, the company is now active in more than 40 countries and describes itself as the world’s largest food network, with more than 150,000 restaurant partners and some 171 million orders processed in 2016 alone.
Delivery Hero has also announced an acquisition this year; in late May it agreed to pick up Kuwaiti peer Carriage Logistics General Trading Company for an unknown consideration.
The group has raised over USD 1.00 billion in funding to date and its investors include the likes of Rocket Internet, Insight Venture Management, Putnam Investments and German Startups Group Berlin.
It also announced a considerable divestment in late 2016, having committed to jettison its UK business, known as Hungryhouse, to Just Eat for GBP 240.00 million.
That deal remains subject to the green light from the UK’s Competition and Markets Authority; in May the body said it will conduct a phase two review of the transaction, which it believes could adversely impact upon competition in the sector.
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