Dual-class share structures: failing to deliver? Guy Morgan and Chien-Wei Lui write in PLC magazine

This article first appeared in the May 2021 issue of PLC magazine.

On 31 March 2021, Deliveroo plc undertook its highly anticipated initial public offering (IPO), listing on the standard segment of the Main Market of the London Stock Exchange (LSE). Shares in the food delivery app closed on the opening day of trading at 287p, 26% down, with further falls since.

In examining the reasons for the poor performance of the IPO, it has been widely reported that the company failed to win the backing of many of London’s biggest investors, that flagged the company’s dual-class share structure as being one of their concerns.

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