In the manner of one of its riders turning up with a box of pizza, Deliveroo’s initial public offering came along with apparently good timing just as the London market was keen to show it can attract “hot” tech listings. Regrettably, the pizza arrived cold. The 26 per cent share price fall on Deliveroo’s opening day was a blow to City ambitions to fend off competition from the US and exchanges such as Amsterdam in attracting high-growth companies. It sharpens the government’s dilemma as it considers plans to reform listing rules to make the UK market more enticing, amid some investor unease.
The fact that Deliveroo’s offering fizzled does not, in itself, mean London cannot attract future tech listings. Tech debuts have disappointed before — think of Facebook, or Ocado. Several specific issues, moreover, lay behind Deliveroo’s failure to deliver. The offer proved poorly-timed, with the market appetite for tech stocks waning as bond yields rose. Some investors were wary of its dual-class structure, and potential risks to its model after UK courts…
