(Bloomberg) — Food-delivery startup Deliveroo Holdings Plc began taking investor orders in a share sale of as a lot as 1.77 billion kilos ($2.45 billion), marking the biggest preliminary public providing within the U.Ok. since September.Deliveroo is promoting shares at 3.90 kilos to 4.60 kilos apiece, in keeping with an announcement Monday, valuing the corporate at 7.6 billion kilos to eight.Eight billion kilos.The providing is the most important float on the London Stock Exchange since THG Plc’s 1.88 billion-pound providing in September, in keeping with knowledge compiled by Bloomberg. The firm will take investor orders by means of March 30, with the inventory set to begin buying and selling the subsequent day, in keeping with phrases seen by Bloomberg News.The sale consists of as many as 384.6 million shares, and that quantity might be elevated by as a lot as 10% if there’s sufficient demand. Besides the 1 billion kilos the corporate goals to boost promoting new shares, present shareholders may even supply inventory within the IPO, Deliveroo stated, with out offering particulars. It plans to to take a position its proceeds to gas development.Deliveroo had gathered sufficient investor demand to cowl the complete deal dimension all through the worth vary inside hours of opening the e-book, in keeping with phrases seen by Bloomberg News.It is coming to the market at a time when coronavirus restrictions have triggered hovering demand for meals supply. Gross transaction worth — the full worth of purchases on its platform — rose 121% in January and February versus the identical interval final yr, the corporate stated Monday, after a 64% enhance in 2020.In its final full-year outcomes, Deliveroo stated that it had been worthwhile “at the operating level” for greater than six months in 2020. Still, the corporate posted an underlying loss for the yr of 223.7 million kilos.“Bringing the food category online represents an enormous market opportunity,” it stated, including that lower than one of 21 meals per week together with breakfast lunch and dinner are ordered on-line now.CompetitionMarket alternative for the sector “has always been there,” however there’s additionally competitors, stated Shaunak Mazumder, a world equities fund supervisor at Legal & General Investment Management, including that he would have most well-liked for the providing “to come in slightly below the range to give more of an IPO discount and to account for possibly slower growth as we transition out of lockdown.”Deliveroo competes with the likes of Uber Technologies Inc.’s Uber Eats and Just Eat Takeaway.com NV, apart from a number of smaller grocery supply apps. Progress in vaccine rollouts throughout the U.Ok., Deliveroo’s greatest market, threatens to result in a drop in at-home eating later this yr. Still, if the corporate manages to carry on to its lockdown features and retains up with new restaurant signings, it will be “attractive,” Mazumder stated.The firm gained’t be worthwhile once more till 2023, in keeping with some analyst estimates, stated Dev Chakrabarti, a portfolio supervisor at AllianceBernstein.“What you can’t capture is how competitive the marketplace will be, and whether one of the other large players will throw in the towel and leave; until that happens the pricing will likely remain in promotional mode as opposed to rational,” he stated.Food-delivery corporations additionally face rising questions in regards to the gig financial system mannequin, particularly after a watershed ruling in Britain’s Supreme Court final week, underneath which Uber will reclassify all of its 70,000 drivers within the nation as staff, who’re assured particular advantages underneath U.Ok. legislation.Although this gained’t apply to its Uber Eats model, “winds of change are blowing through the sector,” Hargreaves Lansdown Plc analyst Susannah Streeter wrote in an emailed assertion.“It’s clear the challenge to Deliveroo’s contractor model is likely to continue,” she stated, noting that the European Commission is ready to attract up new laws governing how the gig financial system mannequin works throughout the bloc. Just Eat Takeaway has already pledged to supply U.Ok. staff hourly wages, sick pay and pension contributions.Deliveroo this month introduced plans to create a fund to assist eating places and grocers in rebuilding their companies after the pandemic, and in addition will give its “longest-serving and hardest-working riders” particular person funds of as a lot as 10,000 kilos. The firm may even make 50 million kilos of shares out there to its clients as half of a “community offer.”Dual-Class ConstructionDeliveroo is itemizing with two courses of shares, which can give Chief Executive Officer Will Shu outsized voting rights for 3 years. Shu holds 6.1% of the corporate in keeping with a registration doc, which might be valued at as a lot as 540 million kilos on the prime finish of the valuation expectations disclosed Monday.The providing comes after a government-backed report this month made a slew of suggestions to reform U.Ok. itemizing guidelines, together with permitting such dual-class share constructions on the premium phase of the LSE, nevertheless it might be months earlier than these are applied.The proposals are half of London’s makes an attempt to retain its clout as a significant monetary heart in a post-Brexit world and entice fast-growth expertise corporations to its inventory trade. About 4.Eight billion kilos has been raised within the U.Ok. by means of IPOs within the first three months of the yr, in keeping with knowledge compiled by Bloomberg, in what would possibly find yourself because the busiest-ever first quarter for listings within the City.Even on the low finish of the worth vary, Deliveroo would have the very best market worth upon admission of any firm to go public in London since Allied Irish Banks Plc listed in June 2017 with a market worth of 12 billion euros ($14.Three billion).Deliveroo’s shareholders embody Amazon.com Inc., which holds a 16% stake, enterprise capital companies DST Global and Index Ventures, who personal about 10% every, and U.S. mutual-fund firm T. Rowe Price Group Inc. with a 8.1% curiosity.Goldman Sachs Group Inc. and JPMorgan Chase & Co. are joint world coordinators on the providing, whereas Bank of America Corp., Citigroup Inc., Jefferies and Numis Securities Ltd. are joint bookrunners.(Updates so as to add investor feedback, CEO’s stake.)For extra articles like this, please go to us at bloomberg.comSubscribe now to remain forward with essentially the most trusted enterprise information supply.©2021 Bloomberg L.P.