Takeaway company valued at nearly £1.5bn
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JUST EAT, the online takeaway company waging war on cooking, has listed on the London Stock Exchange.
Valued at nearly £1.5bn, it is the largest technology float on the London Market in eight years.
The company and its investors are selling almost a quarter of its equity, 138m shares, to raise £360m.
London success story
JUST EAT hope to receive £100m million from the floatation, with the rest going to their investors. The company started out in Denmark but have been based in London since 2006.
Since then they scaled to become the European market leader, and raised a £40m funding round in April 2012, earning them a place in our Top 3 Investments feature in our Winter 2013 print edition.
High Growth Segment
JUST EAT is the first firm to float on the London Stock Exchange’s hotly anticipated High Growth segment.
On the High Growth segment, comapanies do not have to float as much of the equity as they would if they were to have a Premium listing.
The High Growth Segment launched back in March 2013. It was one of the government’s early policy priorities for the Tech City initiative, and allows fast growing firms to side step the Alternative Investment Market (AIM) and list onto the main London Stock Exchange.
Among other criteria, companies must be able to demonstrate growth in revenues of at least 20% over the three years before admission, be a revenue generating trading business and control the majority of its assets.
The first Tech City IPO?
London Deputy Mayor for Business and Enterprise Kit Malthouse believes the listing could lead to more tech companies following its example:
This shows not only that exciting tech firms like JUST EAT can find a route to stock markets through London, but also that this city’s thriving tech sector continues to nurture new success stories.