Source: Business Insider
Summary List Placement Deliveroo’s hotly anticipated listing on the London Stock Exchange received a fresh blow on Friday, as David Coombs, head of multi asset investing at UK-asset manager Rathbones, told Insider his funds would not invest in the food delivery company’s IPO because of several concerns around the business model. Coombs, who oversees around $2.7 billion, according to Bloomberg data, joins other heavyweight UK firms like Legal and General, Aviva Investors and Standard Life Aberdeen to avoid the blockbuster IPO. These three firms collectively manage over $2.9 trillion. Deliveroo, which is part-backed by Amazon, is targeting a valuation of up to £8.8 billion ($12.12 billion) at IPO, which would make it London’s largest since commodity miner and trader Glencore listed in 2011. But, the company has issues on “just about every level,” Coombs told Insider, highlighting potential unprofitability and workers’ rights issues. “I’m not making a moral judgment, this is a business risk issue… but it doesn’t fit a multi-asset stock on multiple levels,” he said.