VC-backed Delivery Hero readies for €4bn+ IPO

Oscar Geen
29 June 2017

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VC-backed food delivery company Delivery Hero has set the final offer price for its IPO on the Frankfurt Stock Exchange at €25.50 per share.

The company expects to raise €996m through the offering of 18,950,000 new shares, 15,000,000 existing shares and an overallotment option of 5,092,500 shares from the holdings of Global Online Takeaway Group.

The new shares are expected to generate net proceeds of €465m. Assuming the placement of all shares, approximately 22.7% of Delivery Hero's share capital will have been placed with the IPO.

The listing is expected to give the company a total enterprise value of €4.4bn. Rocket Internet is the largest shareholder with approximately 35% of the current share capital.

Citigroup, Goldman Sachs and Morgan Stanley will act as joint global coordinaters and joint bookrunners, while Unicredit, Berenberg, Jeffries and UBS have been mandated as additional joint bookrunners.

Shares will trade under the symbol DHER from 30 June 2017.

Previous funding
More than $1bn has been invested in Delivery Hero to date, including €500m from VC firms, according to unquote" data.

Early-stage VC investors sold a €209m stake in the company to Rocket Internet in February 2015, with vendors including Insight Venture Partners, Kite Ventures, Phenomen Ventures, Point Nine Capital and Vostock New Ventures.

Delivery Hero has grown through a combination of organic growth and acquisitions. The most recent example of the latter was the purchase of Kuwait-based food delivery company Carriage. It also bought Damejidlo and Jidloted from the Czech Republic and Slovakia in January 2015, MyLorry in April 2015, pizza.de in August 2014 and point-of-sale app provider 9Cookies in June 2014.

Company
Founded in 2010, Delivery Hero is a global food delivery and takeaway service with headquarters in Berlin, Germany.

In 2016, its revenues increased by 71% to €347m and continued to grow in the first quarter of 2017 by 64% on a like-for-like basis.

The company is not yet profitable, recording an aggregate adjusted EBITDA of -€116m in 2016. Although this was improved from a €175m loss in 2015. It is active in 40 markets and employs more than 6,000 people.

People
Delivery Hero – Niklas Östberg (CEO).