In the first 20 minutes of Deliveroo’s listing on the London Stock Exchange, the company lost £ 2 billion as its share price fell 30%.
Deliveroo was originally valued at £ 7.6 billion and fell below the target of 390 pence to 271p within the first 20 minutes of trading stocks.
Last week, Aberdeen Standard and Aviva Investors, both of whom manage more than £ 800 billion, said they would not invest due to the company’s labor practices.
Canadian BMO Global Asset Management firm, which manages £ 692 billion in assets, has also announced not to invest due to driver working conditions and low pay.
Deliveroo’s largest investor, Amazon, sold £ 91 million worth of shares in the IPO and the company continued to raise £ 1.5 billion in share capital.
This has brought investors £ 500m in profit, giving Deliveroo over £ 1bn to invest in new “growth initiatives”.
Deliveroo General Manager Will Shu earned around £ 26 million and said: “I am very proud that Deliveroo is going public in London, our home. Our goal is to build the definitive online food business and we very much look forward to the future. “