First day of doom for Deliveroo

摘要

UK food delivery company DELIVEROO has suffered one of the worst share trading debuts on the LSE in recent memory with its shares closing on Wednesday 26% below IPO pricing. The close of 287.45p represented a near £400m loss on IPO proceeds of £1.5bn, though the VWAP for the day was considerably better at 301.58p. Shares were at 277.25p by midday on Thursday. The timing of Deliveroo's IPO has clearly worked against it. The deal comes at the end of a record first quarter for IPOs in EMEA and the busiest quarter for US IPOs since 1999. Deal fatigue, combined with the impact of rising rates and a switch from growth to value stocks, means returns from European IPOs have been negligible during March. Archegos Capital Management blowing up has also rippled through markets in the past week.