Just-Eat and eDreams Odigeo share prices drop

Just-Eat, which priced its IPO at £2.6 per share on 3 April, closed down 14p for the day yesterday on £2.5.

Meanwhile on the Madrid Stock Exchange, shares in eDreams Odigeo, the Permira and Ardian-backed online travel agency, also dropped from €10.25 to €9.81 in the first day of trading yesterday. The company had an initial market cap of around €1.1bn and used the IPO proceeds of €50m to pay down a portion of senior notes due in 2019 and to repay some of its debt.

The two businesses add to the list of recently floated online companies that have seen their share price drop post-listing. In March, King Digital Entertainment, also backed by VC firms including Apax Partners and Index Ventures, saw its share price fall more than 15% in its first day of trading on the NYSE.

Permira and Ardian, which both retained a stake in eDreams Odigeo following the flotation, acquired online travel agent Opodo for €450m in 2011 from parent company Amadeus, according to unquote" data. Both private equity firms invested via their existing portfolio companies Go Voyages and eDreams, with a view to merge the entities and create an online travel agent with revenues of more than €1bn.

Index Ventures, Vitruvian Partners, Greylock Partners and Redpoint Ventures were among the major selling shareholders in Just-Eat's initial offering. In April 2013, Vitruvian led a $64m round for the company, with capital drawn from its maiden vehicle Vitruvian Investment Partnership, which closed on €925m in 2008.

Greylock and Redpoint co-led a $48m series-B round in March 2011 with existing investor Index. This marked the two firms' first investment in the online takeaway giant.

Index first invested in Just-Eat via its €350m Index Ventures V fund in July 2009. The firm led the £10.5m series-A round which also saw Venrex back the company.

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