You are using an older browser version. Please use a supported version for the best MSN experience.

Deliveroo shares rise 2% on first full trading day

BBC News logo BBC News 7/04/2021
© Getty Images

Deliveroo shares have edged up on its first fully open day of trading on the London Stock Exchange.

Shares rose more than 2% to 288p early on Wednesday, the first day the 70,000 retail investors were allowed to trade.

They are still well below the 390p paid as the shares dived on their debut last week amid big investors' concerns over workers' rights and profits.

Hundreds of Deliveroo riders are expected to go on strike on Wednesday as they call for higher pay.

The food delivery firm's share sale marked London's biggest stock market launch for a decade, but the sharp fall seen saw it dubbed "the worst IPO [initial public offering] in the history of London".

Smaller investors, known as retail investors, got their first chance to trade their shares on Wednesday as what is described as "unconditional trading" began.

Despite small gains on Wednesday, the company's share price is still far below its 390p float price on its debut when big investors and Deliveroo customers could buy or sell shares. The company had initially hoped for a share price of up to 460p.

Deliveroo, which has not yet made a profit, had initially hoped for a share price of 460p, but had to accept a lower price, saying it had chosen to "price responsibly" and sell its shares at the bottom of its planned price range due to "volatile" market conditions.

Some of the UK's biggest investment fund managers, such as Aberdeen Standard, Aviva Investors, BMO Global, charity fund manager CCLA, Legal and General Investment Management and M&G said they would not buy shares in Deliveroo, citing concerns, including over the working conditions of its riders.

More from BBC

image beaconimage beaconimage beacon