Deliveroo has priced its upcoming IPO at the bottom end of its 390p- 410p range, valuing the delivery business at £7.6bn compared to a possible £8.8bn at the top end.
The UK-based outfit had already reduced the top price to 410p from 460p, in spite of what it said was strong demand for the shares.
A host of big name institutional investors inlcud8ing Standard Life and Aviva had publicly shunned the offer on concerns over the status of its delivery riders and its business model.
The prospectus highlighted its drivers are paid as contractors and the possibility that in future it might have to classify them as employees with benefits such as sick pay and holidays.
Another issue was said to be the dual share structure that will enable founder Will Shu to exercise more control over the business once it is listed, although this two-tier option was said to be one of the reasons the company decided to float in the UK.
Even at the reduced price, Deliveroo will still be the UK’s largest float since Glencore in 2011 and the company said volatile conditions prompted it to reduce the price.
A spokesman told reporters that the IPO was covered multiple times throughout the [price] range, 'led by three highly respected anchor investors'.
"Given volatile global market conditions for IPOs, Deliveroo is choosing to price responsibly within the initial range and at an entry point that maximises long-term value for our new institutional and retail investors."