Founded in 2013, Deliveroo is a food delivery company that has recently announced it will seek a dual listing on the London Stock Exchange. Aiming to earn more than Â£1 billion in its initial public offering (IPO), Deliverooâ€™s debut on the market will be one of the most ambitious listings the London Stock Exchange has seen since the arrival of Royal Mailâ€™s stock in 2013.
Although Deliveroo hasnâ€™t currently announced a share price or date for its formal listing, investors looking to get in on the delivery giant can begin preparing for the companyâ€™s upcoming IPO now.
When is the Deliveroo IPO Date?
At the time of publication, Deliveroo has not announced a formal date for its IPO listing. Investors who are interested in buying shares of Deliverooâ€™s stock on the IPO date can track the listing progress and open an account with an international broker now to prepare. Benzingaâ€™s IPO calendar is a great way to keep your eyes on upcoming market entrances.
Deliveroo Financial History
Deliveroo is an online food delivery company operating throughout the United Kingdom. Deliveroo operates in a similar manner to companies like UberEATS in the U.S. â€” customers place an online order through the Deliveroo app or website, which is then delivered by self-employed contractors. Deliveroo works with some of the largest restaurant chains in the U.K. and has quickly grown in popularity thanks to the companyâ€™s exclusive partnership with local restaurants.
In June 2014, Deliveroo completed a successful round of Series A funding to the tune of Â£2.75 million, followed by a January 2015 round of Series B funding valued at $25 million. In May 2019, Deliveroo announced a Series G round of funding led by Amazon.com valued at $575 million. This round of funding brought the total amount of raised monies to more than $1.35 billion, which would then compound to more than $6.92 billion after an early round of funding in 2021.
Deliverooâ€™s IPO is anticipated to be one of the largest in London Stock Exchange (LSE) history, which has many investors excited about future growth and potential. In 2018, the company had an annual revenue of about $661 million and employed more than 2,300 full-time employees with more than 30,000 independent contractors.
A 2017 study by macroeconomic consultancy Capital Economics even found that Deliverooâ€™s services added more than $571 million in value to the economy of the U.K., with experts projecting an eventual increase to more than $2 billion.
Though hype is on Deliverooâ€™s side for its upcoming IPO, the company faces significant competition in its sector. As companies with similar business models like Just Eat and Grubhub. One of Deliverooâ€™s primary competitors in Europe, Foodora, shares the exact same business model and corporate structure as Deliveroo. Deliveroo has also reported losses each year and has yet to turn a profit despite its billion-dollar valuation.
Deliveroo plans to seek an IPO at some point in 2021. Preparing for Deliverooâ€™s entrance into the stock market can help you be prepared when the companyâ€™s IPO date arrives. Hereâ€™s how to get started if youâ€™ve never bought or sold stock before.
- Pick a brokerage.
A broker is a financial service provider authorized to fulfill buy and sell orders for retail investors. The first step to buying and selling shares of stock is to open an account with a broker.
If youâ€™re primarily interested in buying Deliverooâ€™s stock on its IPO date, the first thing you should look for when comparing brokers is access to the LSE. Deliverooâ€™s stock will be listed on the LSE at its IPO â€” and not every broker offers access to trading on foreign markets if youâ€™re based in the U.S. Be sure to consider international market access when you decide where to open a brokerage account.
Some additional factors you might want to consider before you open a brokerage account may include:
â€¢ Commissions and fees: Though many brokers have ditched commission-trading in exchange for free trading access, many brokers continue to charge commissions when buying and selling stocks on international markets. Be sure to know and calculate account maintenance fees and commissions when you decide where you want to open a brokerage account.
â€¢ Ease of use: Some brokers offer a comprehensive trading and charting experience for experienced investors, while others aim to streamline the platformâ€™s interface for new investors. If possible, test out a demo account for a few different brokers until you find a platform that offers trading on your skill level and which includes all of the tools you need.
â€¢ Access to additional markets: If your only desire is investing in Deliverooâ€™s stock, youâ€™ll want to work with a broker that accepts clients in your jurisdiction and allows LSE trading. However, if you also want to trade additional products (like options, cryptocurrencies, futures and forex) youâ€™ll need to open an account with a broker that supports all of these products.
- Decide how many shares you want.
When your account is open and funded and the date of Deliverooâ€™s IPO has arrived, decide how many shares of stock you want to buy. Deliveroo has not yet announced an opening IPO price, which makes it difficult to anticipate how many shares you can buy in the future. However, itâ€™s a good idea to set a budget ahead of time and to calculate the number of shares youâ€™re going to invest in and the dollar amount.Â
Donâ€™t worry if your investment doesnâ€™t come out to an exact number of shares â€” most brokers now allow you to purchase â€œfractional sharesâ€ of major stocks based on a dollar amount you wish to invest.Â Â
- Choose your order type.
After deciding how many shares of stock you want to buy, youâ€™ll need to select the type of buy order that you want to place. Some of the most common types of buy orders include:
â€¢ Market order: A market order is executed at the current market price. Market orders are filled more quickly than other types of orders but give you less control over the price you pay per share.
â€¢ Limit order: A limit order is executed at or below a specific â€œlimit priceâ€ you set when you place the order. If your broker can buy the shares you want to invest in below the limit price, they will fill the order. If the price of the stock stays above the limit price, your broker will not fill the order.
â€¢ Stop order: A stop order is executed as a market order once the stock youâ€™re investing in passes a certain price. Stop orders are commonly used for momentum plays or when a stock breaks through an upper sell wall.
â€¢ Trailing stop order: A trailing stop order is executed when the price of a stock falls below its lowest price by a certain percentage or dollar amount.
â€¢ Stop-limit order: A stop-limit order combines the characteristics of both the stop order and the limit order. When you place a stop-limit order, youâ€™ll specify a lower â€œstopâ€ price that you want to start buying at and an upper â€œlimitâ€ price that you want to stop buying at. If the stop price is reached, your broker will convert your order to a limit order and begin filling it. When the limit price is reached, the broker will stop filling your order. This gives you more control over when your order is carried out.
Depending on the broker you work with, you might have access to additional order types and execution options.Â
- Execute your trade.Â
Once youâ€™ve submitted your order, you can sit back and relax. Your broker will fill the order according to your instructions and deposit the shares into your account.Â Â
Best Online Brokers
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Should you Invest in Upcoming IPOs?
If you plan to invest in Deliverooâ€™s upcoming IPO, contact your broker and be sure that your account is currently approved for international trading. The stock will be listed on the LSE at some point in 2021 according to insider projections, which means thereâ€™s still plenty of time to open a new taxable brokerage account with a broker that supports international trading.