AAA Delivery Hero gets set for IPO

Delivery Hero gets set for IPO

Germany-based, corporate-backed online food ordering service Delivery Hero confirmed yesterday it is preparing for an initial public offering in which it will aim to raise €450m ($507m).

E-commerce holding group Rocket Internet, which owns about 35% of the company, could seek to sell an equal amount of shares, Reuters reported, citing people close to the matter. Reuters also claimed the IPO would value Delivery Hero at up to €4.5bn.

Founded in 2011, Delivery Hero operates an on-demand food ordering service that partners with local restaurants in 40 countries across Europe, the Middle East, the Americas and the Asia-Pacific region.

The company increased its revenue 71% in 2016 to €347m, and it boosted its first quarter revenue 68% year on year in the first quarter of 2017, but has not revealed details of its losses.

The offering will follow roughly $1.4bn in funding, including a $423m investment last month by e-commerce and media group Naspers, which holds approximately 10% of Delivery Hero’s shares.

Rocket Internet invested $568m in the company in 2015, while Tengelmann Ventures, the corporate venturing arm of retailer Tengelmann, took part in a $5.5m series A round in 2011 and a $30m series D in 2013.

Other investors include Holtzbrinck Ventures, Vostok Nafta, Ru-Net, Insight Venture Partners, Kite Ventures, Team Europe, Kreos Capital, Phenomenon Ventures, Luxor Capital, General Atlantic and Point Nine Capital.

Delivery Hero plans to float in Germany and Luxembourg, and Citigroup, Goldman Sachs International and Morgan Stanley have been appointed joint global coordinators and joint bookrunners for the IPO. UniCredit Bank, Berenberg, Jefferies and UBS Investment Bank are joint bookrunners.

Niklas Östberg, CEO of Delivery Hero, said: “Going public and listing our shares on the stock market will further enable us to develop the company and provide us with additional capital to expand our leadership positions in the online food ordering and delivery market.

“An IPO will also give us more flexibility as we continue to focus on creating an amazing takeaway experience.”

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