Food delivery company Deliveroo has seen investor demand for its initial public offering (IPO) exceed the full deal size, setting the stage for London's biggest IPO in a decade.
The London-based firm is expected to make its stock market debut on March 31 with a market capitalisation of between £7.6 billion and £8.8 billion.
Banks working on the deal said on Monday that its books were covered throughout the price range of between 3.90 and 4.60 pounds per share, indicating investors demand exceeded the full deal size.
Deliveroo has opted not to pursue a premium listing, which allows founder and chief executive Will Shu to retain enhanced shareholder rights. This rules it out of inclusion in the FTSE indices.
The company has benefited from the closure of restaurants for anything other than takeaways during the Covid-19 crisis and revenues have soared.
Its so-called gross transaction value - which measures the total value of orders received - soared by 64.3% in 2020 to £4.1 billion.
The listing is set to be London's biggest IPO since Glencore in May 2011 and it will be the biggest tech IPO on the LSE, dwarfing The Hut Group last year and the 2015 listing of Worldpay Group, which has since delisted.
Meanwhile, a trade union has called for Deliveroo's UK riders to strike when the meal delivery service floats on the stock market next month.
It said the action would highlight dissatisfaction with the company's business model and approach to workers' rights.
Some investment firms have said they will not participate in the initial public offering (IPO).
Insurer Aviva for instance highlighted a lack of rights for riders as an investment risk as the company might be forced to change its business model.
Deliveroo said investor demand had continued to build since its roadshow began on Monday, and said the views of the union which announced the strike, the Independent Workers' Union of Great Britain (IWGB), did not represent the vast majority of riders.
The IWGB previously lost a legal challenge to Deliveroo in 2018.
The case sought to secure rights such as the UK minimum wage for riders, but the court ruled riders were self-employed.
"Investing in Deliveroo means associating yourself with the exploitative and unstable business model," IWGB President Alex Marshall said in a statement, adding the strike was planned for April 7, to coincide with the IPO.
The rights of people who work in the so-called "gig economy" have been an increasing focus in Britain.
Ride-hailing app Uber gave its workers more entitlements earlier this month after losing a Supreme Court case.
Deliveroo said job satisfaction levels among its 50,000 self-employed riders in Britain was at an all-time high, and that the flexibility they had was a big attraction.
"Thousands apply to work with us every week, reflecting the strong demand for our on-demand model," a company spokeswoman said.
