Deliveroo plummets 30% in its debut on the stock market despite the cut in its initial price

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Deliveroo stumbles on arrival at the London Stock Exchange. Shares of the food delivery company plummet 30.5% at intraday lows despite having lowered its opening price and staying with the lowest possible. From £ 3.90 to 2.71 of its most bearish crosses. At the close, it fell 26.3% to 2,875 pounds.

The strong setback in the debut session translates into the loss of a stroke of more than 2 billion pounds of capitalization, about 2,350 million euros to currency exchange. Quite a blow for the expectations that had been turned into one of the star companies new economics of confinement.

Only at intraday highs were the prices set for the bell ringing the same. Deliveroo’s best-selling shares on the day of its release stood at 3,9039 pounds. This is, just 0.1% above the price that was finally established yesterday for the operation.

Bounce off the competition

A lackluster debut for what was aiming to be the largest of a company on the London Stock Exchange in the last decade. So much interest had aroused that UK Finance Minister Rishi Sunak had singled out the company as a “true British technology success story” whose performance could pave the way to new IPOs in the sector. Now, this statement is no longer so obvious.

In this sense, Deliveroo had established a first price range for its premiere that reached 4.6 pounds per share. Later, the underwriters involved in the operation advised to lower the ceiling of this range to 4.1 pounds per share. Finally, on the eve of its premiere it was assumed that it could not go beyond the minimum established in 3.9 sterling.

Despite this sharp decline, the price of rivals such as JustEat Takeaway (+ 1.7%), Delivery Hero (+ 2%) and HelloFresh (+ 5%) pointed to the rise in their respective stock markets. Not even the online commerce giant Amazon (+ 2%), which remains one of the main shareholders of Deliveroo after its placement on the stock market, was infected with its marked losing tone.