How to apply for Deliveroo shares
Deliveroo’s initial public offering (IPO) is set to be the biggest UK share listing in more than seven years, with a valuation of between £7.6bn and £8.8bn.
Deliveroo announced earlier this month that existing customers, restaurants, grocers, and riders would have the chance to apply for shares under a ‘community offer’. This is now open for applications – here’s how it works.
How do I get involved?
Deliveroo is sending customers an email which invites them to register their interest via an individual link. The link invites you to set up an account with its partner PrimaryBid.
To be eligible to apply for a PrimaryBid account, you need a Deliveroo account and to have placed at least one order. To participate, you need to be located and resident in the UK, and provide your name, address, date of birth and National Insurance number.
How do I apply for shares?
People who have registered their interest can now apply for shares – PrimaryBid will send you an email. You can apply to buy £250, £500, £750 or £1,000 worth of shares.
Your money will be debited from your registered card at the point of application.
If you cancel your application during the community offer period, which you can do with the link on your email receipt, you should receive your refund within five business days.
Am I guaranteed to be allocated shares?
No. There is a maximum number of Deliveroo shares available under the community offer and Deliveroo might have more customers applying for shares than are available.
If that happens, you might not get any shares, or you might get fewer than you requested.
Once the community offer period closes, Deliveroo will assess the total demand from customers for its community offering and determine allocations accordingly.
What happens if I don’t get all the shares I applied for?
If the value of the shares you are allocated is less than the cash amount you applied for, you will receive the difference back.
The money will be sent to the bank account linked to the debit card you used for your application, and refunds will take about five business days after the deal closes.
It is likely that every successful applicant will receive a small refund even if they receive the maximum possible application. This is because companies can only issue whole shares, rather than fractions of shares, and so allocations will be rounded to the nearest share.
How can I hold my shares?
If you are allocated shares you can choose where they are stored. If you do not wish to transfer shares to your own stockbroker account, they can be held in a “Corporate Sponsored Nominee” (CSN) service managed by Equiniti Financial Services Limited (Equiniti).
There are no charges to hold shares in the CSN, however there is a fee (set at £5 for the first year) to trade shares and a fee (£5) if you choose to transfer-out to another broker after 7 May 2021.
If I’m allocated shares, when can I start trading them?
Dates are not yet finalised but Deliveroo expects the offer period to last from now until 30 March 2021.
It will then announce allocations for the community offer on 31 March, with shares dished out on 7 April – then you will be free to trade them.