Benzinga | Mar 15, 2021 07:00AM EDT

Amazon-Backed Deliveroo To Offer $1.4B New Shares In IPO: Reuters

Amazon.Com Inc (NASDAQ: AMZN) backed British online food delivery company, Deliveroo, intends to sell shares worth $1.39 billion (?1 billion) in its upsized IPO, Reuters reports.

* The listing would also include the share sale by some existing shareholders, further pushing the deal size.

* The IPO is estimated to value the firm above $7 billion, based on a private funding round completed in January, making it the largest London IPO by market cap since Royal Mail PLC (OTC: ROYMF) (OTC: ROYMY) in October 2013.

* Deliveroo confirmed two classes of shares, with founder and CEO Will Shu as the sole holder of "class B" stock entitling him 20 votes per share, compared to one vote per share for the rest of the stockholders. This arrangement is set to last for three years to prevent Deliveroo from a hostile takeover.

* Dual-class share structures are a common feature of U.S. listed technology companies. However, it is frowned on by some British investors due to the CEO's discriminatory voting power.

* Currently, London-listed companies are not permitted dual-class structure and simultaneous access to the lucrative FTSE indices.

* Deliveroo has earmarked stock worth $69 million for its customers.

* Goldman Sachs and JPMorgan Chase are leading the deal, while Bank Of America, Citigroup, Jefferies Financial, and Numis are part of the syndicate of banks managing the transaction.

* Price action: AMZN stock closed lower by 0.77% at $3,089.49 on Friday.