Goldman Sachs bought $103 million in Deliveroo shares to boost the delivery company’s IPO price, report says
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- Goldman Sachs bought Deliveroo shares worth £ 75 million after the IPO price fell on its London trading debut, the Financial Times reported.
- Deliveroo shares fell as much as 30% when trading in London on March 31st.
- The food company’s advisors had expected more volume than stocks had risen.
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Goldman Sachs bought about £ 75 million ($ 103.5 million) worth of Deliveroo shares to prop up the grocery supplier’s IPO price after the shares fell on their debut in public trading, the Financial Times reported on Tuesday, quoting two people with direct knowledge of the matter.
Deliveroo’s £ 1.5bn IPO resulted in unusually low trading levels for one of the largest London IPOs in years. The volume was around a third of the volume expected by Deliveroo’s consultants, the report says.
Deliveroo shares fell as much as 30% on their debut on the London Stock Exchange on March 31st.
The purchase by Deliveroo’s underwriters equates to nearly a quarter of the value of its shares in Deliveroo’s first two days as a public company last week, according to Bloomberg in the FT report.
Goldman Sachs has so far used roughly half of a total allotment to stabilize the price of Deliveroo shares in the event they fall after the listing, the report said, citing a person with knowledge of the deal. The investment bank was the sole stabilizing agent in the deal and was responsible for the listing process along with JPMorgan Chase.
Goldman Sachs and Deliveroo declined to comment, the FT reported.
Other banks under the Deliveroo deal are Bank of America, Citigroup, Jefferies and Numis.