DELIVEROO SELECTS LONDON AS FUTURE LISTING HOME

DELIVEROO SELECTS LONDON AS FUTURE LISTING

HEADER: The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into Australia, Canada, Japan or the United States. This announcement is not a prospectus and not an offer of shares for sale in any jurisdiction, including in or into Australia, Canada, Japan or the United States.

  • Deliveroo selects London as the venue for expected future listing
  • Commitment to London underscored by company's role in supporting 47,000 jobs in the UK since launching in 2013
  • Plans expected to include a time-limited dual-class share structure closely aligned with the findings of Lord Hill's UK Listing Review to ensure stable execution of management's strategy and enable continued focus on ambitious long-term growth plans

Deliveroo today confirms that it has selected London as the venue for a future listing. CEO Will Shu founded the company in 2013 and was its first rider when it began operating in Chelsea, West London. After eight years of operations and rapid expansion around the globe, choosing London underlines Deliveroo's commitment to making the United Kingdom its long-term home.

2020 was a year of growth for Deliveroo in which it was profitable for over 6 months at the operating level over the course of the year. Given the significant growth potential in the online food delivery sector, the company is considering a potential listing in London to help deliver its ambitious growth plans to become the definitive online food company.

Supporting growth in the UK restaurant sector

Deliveroo's decision to list in London comes as a new report from Capital Economics reveals the significant contribution the company has made to the UK economy and restaurant industry since its launch.

The independent analysis reveals that Deliveroo has supported 46,700 jobs in the UK, including 38,300 in the restaurant sector since its launch in 2013. This is in addition to the thousands of self-employed riders who have worked with the company since launch and demonstrates the value Deliveroo's operations add to the UK economy.

Structured for sustained innovation and growth

As part of its growth priorities for 2021, Deliveroo is focused on ambitious plans, including expanding its Editions delivery-only kitchens; expanding on demand grocery; extending its Plus subscription service, bringing this to new geographies; and offering its Signature service to restaurants, enabling customers to order delivery via restaurants' own websites. The company will develop new tech tools to support restaurants, to provide riders with more work and to extend choice for customers, bringing them food from more restaurants than ever before.

In a potential future float, Deliveroo is expected to adopt a time-limited dual-class share structure to provide Will Shu, founder and CEO, with the stability to take decisions to enable the company to execute on its long-term strategic vision in order to create long-term shareholder value. Such structures involve two different classes of shares with differential voting rights and are currently commonplace on exchanges in the US and Hong Kong, as well as within Europe.

The announcement of the expected dual class share structure follows the publication of Lord Hill's UK Listing Review, which found: "[Dual class shares] provide a way for the founder of the company to continue to be able to execute their vision for how the company should evolve and grow while still allowing others to share in that growth...Their vision and their ability to execute that vision is often part of the company's selling point."

Deliveroo's dual-class share is expected to closely align with the recommendations set out within the Lord Hill Review. The structure will be limited to three years, after which the company will move to a traditional single share class structure. Alongside the dual-class share structure, Deliveroo intends to have a strong commitment to corporate governance standards including a majority independent Board of directors as well as upholding diversity standards.

Rishi Sunak, the Chancellor of the Exchequer said: "The UK is one of the best places in the world to start, grow and list a business - and we're determined to build on this reputation now we've left the EU. That's why we are looking at reforms to encourage even more high growth, dynamic businesses to list in the U.K. So it's fantastic that Deliveroo has taken this decision to list on the London Stock Exchange. Deliveroo has created thousands of jobs and is a true British tech success story. It is great news that the next stage of their growth will be on the public markets in the U.K."

Will Shu, CEO of Deliveroo, said: "Deliveroo was born in London. This is where I founded the company and delivered our first order. London is  a great place to live, work, do business and eat. That's why I'm so proud and excited about a potential listing here. At Deliveroo we want to be the definitive food company, bringing consumers the best choice of foods, giving restaurants new opportunities to grow their businesses, and providing riders with great work. We are always focused on developing the best proposition for consumers, restaurants and riders and look forward to bringing our service to new parts of the UK as we continue to grow."

Claudia Arney, Chair of Deliveroo, said: "Deliveroo is proud to be a British company, and the selection of London as its home for any future listing reflects Deliveroo's continued commitment to the UK. London is not just where Deliveroo was born, it is  one of the leading capital markets in the world, with an incredible technology ecosystem, sophisticated investment community and a skilled talent pool. The time-limited dual class structure would provide Will and his team with the certainty needed to execute against their ambitious growth plan to become the definitive online food company. We welcome Lord Hill's recommendations to support modernisation of the market and continued tech sector growth in the UK."

FOOTER: This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America.  This announcement is not an offer of securities for sale into the United States.  The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration.  No public offering of securities is being made in the United States.

This announcement and the information contained herein is for information purposes only and does not contain or constitute or form part of, and should not be construed as, an offer or invitation to sell, or the solicitation of an offer to buy or subscribe for, securities.

 The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed by any person for any purpose on the information contained in this announcement or its accuracy, fairness or completeness.

This announcement may include forward-looking statements, which are based on current expectations and projections about future events. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target", "believe", "expect", "aim", "intend", "may", "anticipate", "estimate", "plan", "project", "will", "can have", "likely", "should", "would", "could" and any other words and terms of similar meaning or the negative thereof. These forward-looking statements are subject to risks, uncertainties and assumptions about Dalton Ltd (the "Company") and its subsidiaries and its investments (together, the "Group"), including, among other things, the development of its business, trends in its operating environment, and future capital expenditures and acquisitions. The forward-looking statements in this announcement speak only as at the date of this announcement. These statements reflect the beliefs of the Directors, (including based on their expectations arising from pursuit of the Group's strategy) as well as assumptions made by the Directors and information currently available to the Company.

Further, certain forward-looking statements are based upon assumptions of future events which may not prove to be accurate and neither the Company nor any member of the Group, nor any of such person's affiliates or their respective directors, officers, employees, agents and/or advisors, nor any other person(s) accepts any responsibility for the accuracy or fairness of the opinions expressed in this announcement or the underlying assumptions. Actual events or conditions are unlikely to be consistent with, and may differ significantly from, those assumed. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur. No representation or warranty is made that any forward-looking statement will come to pass. No one undertakes to update, supplement, amend or revise any forward-looking statements. You are therefore cautioned not to place any undue reliance on forward-looking statements.

The Company may decide not to go ahead with any listing and there is no guarantee that shares in the Company will be admitted to trading on any venue.

Nothing in this announcement shall constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to acquire, whether by subscription or purchase, any shares or any other securities in the Company or a member of its Group, nor shall it (or any part of it), or the fact of its distribution, form the basis of, or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever.

Nothing contained herein constitutes or should be construed as investment, tax, financial, accounting or legal advice. 

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