Deliveroo IPO – Worth a punt?

IvanOpinion

kinger101 said:

Alexland said:

If anything I find comfort in the failure of this IPO that the market has not lost all sense.

You're not keen on the idea of tepid food being delivered by a sweaty guy in lycra?

Sounds like a wet dream for Family Guy's John Herbert 

keiran

In what way was the Deliveroo IPO a flop, as is always stated?

The founders priced the stock very high and bulldozed the banks, who should know better,  into accepting the ludicrous valuations. The underwriters made profits from the declining share price by "greenshoeing", but that profit was handed to the owners under the terms of their agreement. The founders enticed ordinary Deliveroo customers into generously participating in this IPO by giving them a chance to buy shares if they'd used the app (said customers thinking Deliveroo was showing them a great favour)

So Deliveroo has long robbed its restaurants and delivery riders. And now the banks and their own small investors. The founders have become very rich indeed. A flop - certainly not, but a great success indeed!

Also, can anyone explain why although investors paid £3.90 for the shares, the opening day price shows as £3.30. This has the effect of giving falsely low percentage values for how badly the stock has fared 

underground99

keiran said:

Also, can anyone explain why although investors paid £3.90 for the shares, the opening day price shows as £3.30. This has the effect of giving falsely low percentage values for how badly the stock has fared 

For the free data services, when listing just one historic price per day from a stock exchange they generally show either the end of day last traded price (closing price) or closing mid-price (midway between bid and offer). Some more comprehensive services will show open, high, low , close. If you are saying the opening auction on the stock exchange is 330p I don't disbelieve it, as people on this thread were reporting conditional trading around 325p shortly after 8am.

The market trading data is going to show you what was traded on the market and not what people paid to buy pre-IPO or what the offer price was to buy shares direct from the company in the IPO. The stock exchange is showing the 'secondary' pricing of what the shares were trading at 'second hand' on the market.  The finalised offer price of 390p was announced shortly after 7am via the regulatory news service and people took that into account when establishing the early trading, but that doesn't mean there was any trading at 390p.