Delivery Hero’s much-anticipated IPO has finally been announced. Recently, the German based food delivery company officially announced that it plans to raise as much as €450 million ($506 million) from a public listing on the Frankfurt Stock Exchange in “the coming months”.
In a flurry of news surrounding the company, the announcement of the IPO has certainly been expected, and all signs have pointed towards preparations for a public offering.
Last year, the company quit its plans in China and also reached an agreement (still to be cleared by UK authorities) to offload its UK business to rival company, Just Eat. It also undertook a massive global expansion by snapping up Rocket Internet’s FoodPanda business to give it a presence in 20 new countries across Eastern Europe, the Middle East and Asia, and fortify its position in many other countries.
In terms of financing, the prolific investor, Naspers, threw more than €387 million ($421.3 million) into the business in the last month alone, seen by some as a final push before the IPO announcement.
Delivery Hero, founded just six years ago, reports that it’s services cover over 40 countries worldwide, employing more than 6,000 full-time staff. Most recently valued at over $3.1 billion, following the Naspers deal, the actual terms and pricing of the IPO is not yet clear, since it plans to offer a mix of newly issued shares and an undefined number of shares currently held by investors.
Among the company’s shareholders, Rocket Internet currently owns 35 percent of the company, while Naspers owns a 10 percent stake.
“Going public and listing our shares on the stock market will further enable us to develop the company and provide us with additional capital to expand our leadership positions in the online food ordering and delivery market,” said Niklas Östberg, CEO of Delivery Hero.