Electronic trading major IG is planning to make Deliveroo shares available to trade on the IG platform. Roofoods (Deliveroo) shares will be available to trade on the day of the IPO from 8 am (UK time). The broker will not be offering a grey market.

Once the Deliveroo IPO is completed, the stock will be called Roofoods and will be available as such on the platform.

Both leverage and non-leverage clients can open a position on Deliveroo once Roofoods shares are available on the platform. The price per share has been set at a range of between £3.90 to £4.60. The share price will then fluctuate after the listing as buyers and sellers enter and exit the market.

To participate in the Deliveroo IPO, you must have placed at least one order using their app. If you’re not a Deliveroo customer, you can sign up and place an order to qualify for participation in the IPO.

Additionally, you must be a resident of, and based in, the UK who is at least 18 years of age, and have a valid UK National Insurance number (found on your payslip, P60 and tax letters).

Deliveroo plans to raise £1 billion when it sells new shares as part of its IPO, currently planned for April 2021. It has been a major beneficiary of the lockdowns that have been part of the UK’s response to the Covid-19 pandemic, seeing a huge increase in revenues to £4.1 billion for 2020, compared to £2.5 billion in 2019. It continues to make a loss, although here the trend is in the right direction, with 2020’s loss of £223 million representing a notable improvement over 2019’s £317 million loss.

According to Chris Beauchamp, Chief Market Analyst at IG, having established itself in its home market, Deliveroo now needs to expand. The IPO will give it extra funding to achieve this, but it faces stiff competition from established competitors in key markets such as the US. In addition, the regulatory environment has become less congenial for these ‘gig economy’ companies, as governments and authorities take a closer look at the employment conditions of workers at firms like Uber and Deliveroo.

More information on the Deliveroo IPO for IG UK share dealing clients can be found here.