Deliveroo shares have plummeted on its stock market debut after a number of major UK investors expressed concerns about its gig economy worker model.
Shares in the food delivery business had been offered to investors at 390p each, but dived in early London trading to 275p at one stage, a 30% fall.
The company had initially hoped for a share price of up to 460p.
But in recent weeks a number of high-profile fund managers said said they would not be buying the shares.
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Deliveroo said it had chosen the lower price due to “volatile” market conditions.
The investors were put off by factors including the working conditions of its riders and a lack of investor power over the direction of the company.
Founder Will Shu would have shares with many times the voting power of other investors.
Deliveroo’s self-employed drivers have seen a boom in demand during the Covid-19 pandemic, bringing food from restaurants to housebound customers.
Deliveroo’s planned share sale had attracted much attention as it is one of the UK’s biggest flotation since Glencore’s in May 2011 and also the biggest technology platform float on the London Stock Exchange.
Last week, the company estimated a price range of between £3.90-4.60pm but on Monday trimmed the price range to between £3.90-4.10p.