March 23, 2021 1:15 PM, EDT

Amazon to Sell Deliveroo Stake of Up to $148 Million in IPO

A Deliveroo food carrier cycles along Oxford Street in central LondonA Deliveroo food courier cycles along Oxford Street in central London. (Bloomberg News)

[Stay on top of transportation news: Get TTNews in your inbox.] Inc. could raise as much as $148 million (107 million pounds) by selling some of its stake in Deliveroo Holdings in the food-delivery startup’s London initial public offering.

Amazon will own 11.5% of Deliveroo following its listing, down from the 15.8% it holds now, according to the prospectus for the sale. That implies the retailer could sell as many as 23.3 million shares, which at 4.60 pounds each — the top end of the range at which Deliveroo is marketing the stock — would be worth 107 million pounds, according to Bloomberg calculations.

London-based Deliveroo started taking investor orders on March 22 in the sale of as much as 1.77 billion pounds of stock. The company is looking to raise 1 billion pounds from the IPO, with the rest of the proceeds going to Amazon and other early investors.

Index Ventures, DST, Greenoak, Bridgepoint and Accel are among the other investors selling down stakes in the IPO. Major U.S. fund companies Fidelity Investments and T. Rowe Price Group Inc. aren’t offering any shares in the offering, according to the prospectus.

“We congratulate Deliveroo on their IPO and can confirm that on completion of the IPO, Amazon will still own a large proportion of our pre-IPO minority stake,” a spokeswoman for Amazon said in an email.

Deliveroo CEO Will Shu plans to sell 6.7 million shares, a sliver of his existing holdings, valued at 30.8 million pounds at the top end of the price range.

Shu will hold 6.3% of the company post listing, though the stake will carry 57.5% of Deliveroo’s voting rights because he will be the sole owner of Class B shares, which carry 20 votes each, versus one vote each for Class A stock.

Want more news? Listen to today's daily briefing below or go here for more info: