LONDON • Deliveroo Holdings collapsed in its London public debut as investors abandoned the food delivery start-up criticised for its labour practices and corporate governance, just as the broader technology sector falls out of market favour.
The stock plunged as much as 31 per cent in its first minutes of trading to trigger circuit breakers – the worst performance in decades for a big British listing. The stock closed down 26 per cent at £2.87.
Deliveroo’s £1.5 billion (S$2.8 billion) initial public offering (IPO) was meant to be a triumph for the City of London in its post-Brexit push to lure tech firms away from New York. Instead, the first-day performance looks like a disaster.
As appetite sours for stocks that flourished during the lockdown, institutional investors have rebuffed the bellwether for the gig economy in droves. Asset managers, including Legal & General Investment Management, said they would not buy the stock as Deliveroo’s treatment of couriers does not align with responsible investing practices.
Investors have also baulked at the dual-class structure…