Amazon To Offload $148M Stake In Deliveroo IPO: Bloomberg

Amazon.Com Inc AMZN could raise close to $148 million (£107 million) by offloading 23.3 million shares in food-delivery start-up Deliveroo Holdings Plc’s London initial public offering (IPO) at £4.6 per share, reducing stake ownership from 15.8% to 11.5%, Bloomberg reports.

• Deliveroo’s $1.39 billion share sale in its upsized IPO was expected to lead to share sales by some existing shareholders.
• Deliveroo started procuring investor orders targeting a £1.77 billion share sale, raising £1 billion from IPO and paying the remaining IPO proceeds to the stake seller Amazon and other early investors. Index Ventures, DST, Greenoak, Bridgepoint, Accel, are the additional stake selling investors in the IPO. Deliveroo CEO Will Shu planned to sell 6.7 million shares valued at £30.8 million.
• Shu would retain a 6.3% stake post share offloading while having 57.5% of Deliveroo’s voting rights being the sole owner of Class B shares, which carry 20 votes per share, versus one vote per Class A share. However, the Class B stock would automatically convert into Class A on the third IPO anniversary.
• London continues to debate the dual-class structure alleging undue founder control. As a result, Deliveroo’s LSE listing barred it from listing into indexes like FTSE 100.
• Price action: AMZN shares traded higher by 0.52% at $3,126.91 on the last check Tuesday.