Shares in takeaway service Just-Eat rise on debutThursday 03 April 2014 18.53
Shares in online takeaway firm Just-Eat Group have closed 6.8% above their offer price after their first day of trading in London.
The rising share price gives the company a valuation of more than £1.5 billion.
The London-based company, founded in Denmark in 2001, last year processed more than 40 million orders for 36,000 take away outlets in 13 markets. The largest markets were Britain, Denmark, France, Canada, Ireland and Spain.
Just-Eat priced its shares at 260 pence each. It sold about a quarter of the company's equity. Chief Executive David Buttress said he was delighted at the strong demand from investors.
In contrast, Domino's Pizza Group, Britain's biggest pizza delivery company with more than 860 stores and pre-tax profit in 2013 of £47.6m, has a stock market value of about £870m.
Just-Eat, which says it is the world's largest online market place for restaurant delivery, plans to use the funds to expand. In 2013 it grew revenue by 62% to £96.6m and core earnings rose to £14.1m.
It is the latest in a wave of IPOs across Europe, and companies such as AO World, the online domestic appliances retailer, and boohoo.com, an internet fashion retailer, also saw their shares surge above their offer prices on their market debut.
The listing also marks the first IPO for London Stock Exchange's High Growth Segment, a initiative launched last year tailored to meet the needs of high growth technology companies.