Take Away Service Just Eat Valued at $2.44 Billion in IPO.
Online restaurant delivery company known as Just Eat, had announced on Thursday it would begin to price its initial public offering 260 pence a share, giving it a market value of £1.47 billion ($2.44 billion)
The company operates by utilizing both websites and mobile applications that allow users to order food from local take out restaurants. They had decided to float on the London Stock Exchange, to raise money to support its growth and give both employees and early investors a chance to sell any of their shares.
This offer is expected to raise an amount of proceeds around £360.1 million for the company and selling shareholders assuming the overallotment option is utilized, and £387.1 million for its overallotment options will be used in completion.
The company went on to say that it would be receiving £100 million from its offering, while selling shareholders, which also include backers such as Greylock Partners and Idex Ventures, will also share the majority of the remaining funds raised.
Dealings within the company’s share, which have been priced at the top of their 210 pence to 260 pence share price range, beginning Thursday, with unconditional dealings expected to take place sometime on April 8. The company will also be the first to list on the London Stock Exchanges, named high growth segment, which plans to attract smaller business to float by easing into listing requirements.
Just Eat originally launched its first website back in 2001 and the company has since then grown spectacularly, which now operates under 13 markets, though order in the U.K and Denmark have represented over more than 80% of their revenue of £96.8 million during 2013.
During its peak time, the company was handling over 900 orders a minute for its network of more than 36,000 restaurants. the company commented that it had handled over more than 40 million orders during 2013, up from 23 million in 2012.
Restaurants pa a fee once they sign up and give Just Eat a small piece of the cut for every order. In return, Just Eat guarantees an increase for the restaurants business and encourages them to run specials during slow times.