Amazon to have significant 11.5% stake in Deliveroo after looming shares sale

Amazon is set to shed around 23.3 million shares, allowing the tech giant to raise as much as £107m from the deal in which it will cut its existing stake from 15.8%, according to a prospectus published by the company

Amazon raised its stake in Deliveroo last year in a deal that had to be cleared by the UK’s competition watchdog. Picture: Eamonn Farrell/RollingNews.ie

Amazon is cutting its stake in Deliveroo but will still have an 11.5% stake in the looming shares sale by the food delivery firm, according to a prospectus published by the company.

Deliveroo this week began roadshows for a London IPO and set a price range which will give it a market value of between £7.6bn (€8.8bn) and £8.8bn (€10.2bn). 

This includes the sale of new shares to raise £1bn and about 128.2m shares from existing shareholders at the final price.

According to the prospectus, Amazon is set to shed around 23.3 million shares as part of this, allowing the tech giant to raise as much as £107m from the deal in which it will cut its existing stake from 15.8%. 

Amazon raised its stake in Deliveroo last year in a deal that had to be cleared by the UK’s competition watchdog, and participated in a private funding round in January. 

For the City of London, the Deliveroo shares sale is a big deal and is being held up by the British government as a sign London can still attract major IPOs even after its diminished clout with the UK's exit from the EU. 

It is set to be London’s biggest IPO since Glencore in May 2011, according to data provided by the London Stock Exchange. 

The London Stock Exchange excluded a stock market listing by AIB in 2017 from its data as it had a small listing in Dublin at the time. 

• Reuters