Finance

Deliveroo rises as retail investors join trading

deliveroo-rises-as-retail-investors-join-trading

© Reuters. FILE PHOTO: A Deliveroo delivery driver rides a bike in London

By Julien Ponthus and Abhinav Ramnarayan

LONDON (Reuters) Deliveroo stock opened slightly higher on Wednesday, the first day retail investors were allowed to trade stocks bought during the Food Delivery Group’s (IPO) initial public offering.

At 7:30 a.m. GMT on the first day of unrestricted trading, shares rose 2.7% to 287.7 pence, but were still 25% below IPO after they made their London debut in the had fallen sharply over the past week.

Deliveroo received an initial valuation of £ 7.6 billion ($ 10.46 billion) at a price of 390 pence per share.

The Financial Times reported Tuesday that Goldman Sachs (NYSE :), a global coordinator of the deal, bought Deliveroo shares worth £ 75 million ($ 104 million) to aid the deal.

Deliveroo had made a “community” share offering as part of its IPO, which enabled its customers to participate in the deal.

However, these small retail investors were hurt by the first-day drop in Deliveroo stock, which hurt the company’s initial valuation by about £ 2 billion.

Due to the rules of the London Stock Exchange, they have not been able to trade their shares to this day.

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