Shares in Deliveroo ROO, + 2.45%, rose nearly 3% on Wednesday, the first day an estimated 70,000 retail investors were able to trade the shares they bought during the food delivery company’s disastrous trading debut. Deliveroo shares rose 3.16% to 288.86 pence early Wednesday morning in London when unconditional trading of the shares began.
That’s still well below the 390 pence a share it launched its IPO at last week, which valued company Amazon AMZN, backed by -0.09% at £ 7.6bn. Read: Amazon-backed Deliveroo shares drop 30% in London stock market debut Deliveroo’s stock market debut was meant to be a win for the LSE, which it has been trying to attract Post-Brexit tech listings to compete with rival exchanges in the US and others. European financial centers, including Amsterdam and Frankfurt. But it ended as a flop, with the stock closing 26% at 287 pence a share on its first day of trading as a public company, prompting one analyst to call the stock “Floperoo.” Read: Big Investors Avoid Deliveroo’s $ 12 Billion Initial Public Offering Backed By Amazon Over Worker Rights Concerns Despite Spike In Takeout Orders During COVID-19 Pandemic Shutdowns In The UK and Europe, several large investors declined to buy the initial public offering, citing concerns about the company. structure, workers’ rights and regulatory risk. Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown HL, + 0.31%, said more accurate pricing is also crucial to maintaining retail investor enthusiasm for IPOs going forward. “The offering, at £ 3.90 a share, gave Deliveroo DROOF a valuation of around £ 7.6bn, well above its valuation of around £ 5bn in January after a round of investment, but there have been no fundamental improvements in its outlook. ” Streeter said. “Instead, the float came at a time of growing concern around its gig economy model and the expectation that easing Covid’s restrictions could lead to an initial slowdown in business,” he added. About 400 Deliveroo passengers are planning a strike for fair wages, safety protections and basic workers’ rights on Wednesday. The Independent Workers Union of Great Britain (IWGB) said it had planned socially distanced protests in five towns and cities in England on Wednesday. The demands will include a guaranteed living wage after costs, vacation and sick pay, and an end to unpaid waiting times for drivers. “I will go on strike for my basic rights and those of all other cyclists struggling to survive and support families with the Deliveroo poverty payment,” said Greg Howard, cyclist and president of Deliveroo, the delivery and logistics arm of the IWGB. “I’ve seen conditions deteriorate for years and then, working to the end, I contracted Covid-19 and got very little support from Deliveroo. After the pandemic, more people than ever understand that this exploitation is not a way to treat anyone, much less key workers. The turning of the tide is clear. It is time for rights for cyclists ”, he added. A Deliveroo spokesperson said: “This small, self-appointed union does not represent the vast majority of passengers who tell us they value the full flexibility they enjoy while working with Deliveroo along with the ability to earn more than £ 13 per hour. “We conducted a survey yesterday and 89% of passengers said they were happy with the company and that flexibility was their priority. Passengers are at the heart of our business and today we are starting a new consultation with passengers on how we should invest our new £ 50 million community fund, ”the spokesperson added.