Digesting Deliveroo: timing the likeliest cause of first day woes

By Sam Kerr
01 Apr 2021

The equity market — and beyond — has been puzzling over how Deliveroo, one of the most anticipated IPOs of the year, could have suffered so badly in trading on its first day on Wednesday. Some blamed ESG concerns about the working conditions of the firm's delivery riders, others the dual class-share structure but the simplest explanation was that Deliveroo came at the wrong end of an IPO market that was losing steam.

Deliveroo has been criticised for using a dual-class chare structure which gives its founder Will Shu preferential voting rights.

But a dual-class share structure, while uncommon for a London listing, is not unheard of. The Hut Group, a UK e-commerce company, listed last September with a similar structure ...

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