British food delivery company Deliveroo disappoints in the first day of his trade fair adventure.
Investors only want to pay 2.73 pounds (3.20 euros) per share, while the company itself had set its share price at 3.90 pounds.
In recent days, some large investors have already announced that they do not want to invest in the company, because they are concerned about the working conditions of the couriers.
The Deliveroo IPO would normally be the largest IPO in London ever, but due to a number of setbacks, it is just below the bar.
The company raised about £ 1.5 billion, just under the $ 1.88 billion e-commerce company The Hut raised in September.
Two major UK investment companies, Aviva and Aberdeen Standard, said last week that they lost interest in the company due to the way it would treat its couriers.
Deliveroo has long been under fire for the status of the couriers.
In the Netherlands, there is still a lawsuit against the company because it classifies the couriers as freelancers.
As a result, they receive less social protection and the FNV trade union cannot agree with this.
The Court of Appeal in Amsterdam agreed with the FNV in the case last month, because according to the judge there is no question of self-employment if a certain authority is exercised and a fixed salary is paid.
Therefore, the couriers could claim an employment contract.
Deliveroo is appealing that ruling.
Valuation is considerably lower
David Cumming, the investment
of Aviva, told
Radio 4 in
the UK on Thursday
that there is a combination of investment risk and working conditions for him not to invest in Deliveroo.
"The company itself says that a reappraisal of the couriers is an investment risk," Cumming said.
"But companies could make a huge difference in the lives of employees if they gave employees guaranteed hours and a minimum wage. How companies behave socially is increasingly important."
Aberdeen has similar concerns.
The fact that those two major investors dropped out clearly prompted other investors to take their hands off it as well.
Where Deliveroo originally aimed for a market value of 12 billion euros, it now comes out at 9 billion euros.
That is still the highest valuation at an IPO in London.