LONDON—Deliveroo, the Amazon -backed online food-delivery service, said it would price its initial public offering at the lower end of expectations, signaling a more cautious stance even as demand has surged during the pandemic.
The U.K.-based company said Monday it intends to price its shares between £3.90 and £4.10, suggesting a valuation of between £7.56 billion and £7.95 billion, equivalent to about $10.5 billion and $11 billion. It had previously said they could sell for as much as £4.60. The stock is set to start trading in London on Wednesday under the ticker ROO.
The company said it had received significant demand for the offering but that “given volatile global market conditions for IPOs,” selling shares at the lower end of its initial range would offer better long-term value for investors.
Deliveroo’s IPO is the latest test of investors’ appetite for a highly competitive industry but one that has benefited from more in-home ordering during the pandemic. U.S. peer DoorDash Inc. went public in December in New York.
Deliveroo already counts Amazon as its largest shareholder after the e-commerce giant acquired a 16% stake in 2019 in a deal that valued the startup at $3.5 billion.