Customers of Deliveroo seeking a slice of the company’s blockbuster float are set to receive larger portions of shares if they have ordered regularly through the Deliveroo app.
The food delivery group’s £50 million “community offering” is on track to be oversubscribed, meaning that applicants will be ranked according to their “loyalty”, with the shares apportioned accordingly, City sources said.
The technology company owns an app through which customers order deliveries from restaurants and groceries from shops. Unusually for a big initial public offering, Deliveroo is selling some shares directly to individual investors instead of relying solely on financial institutions. Applications for its community offering close on Tuesday.
UK-based customers who have placed at least one order through Deliveroo can apply for up to £1,000 of shares in increments of £250.
Deliveroo said in its float prospectus that it would “prioritise . . . its most loyal customers first” if the community offer was oversubscribed, and that it had “absolute discretion to decide on any individual allocation”. If the offer is oversubscribed, the size of each applicant’s allocation will depend on an internal customer ranking assigned by Deliveroo, one source said.
The ranking is the product of Deliveroo’s algorithms and is based on the number of orders they have made, among other things, the source said.
Deliveroo declined to comment on demand for the community offering.