Just Eat joins tech IPO queue, aims to raise £100m

Online takeaway service Just Eat has confirmed its intention to float on the London Stock Exchange, in a move that could see it raise as much as £100m.

The Danish firm, which turned over £96.8 million last year through commissions charged to restaurants on the value of orders placed through its platform, joins an increasingly long queue of tech companies looking to list in London.

Just Eat said it would use the money to expand into new countries and acquire complementary businesses. It currently operates in 13 countries and the UK is one of its largest markets.

Just Eat CEO David Buttress said: "The listing of Just Eat on the London Stock Exchange marks the beginning of the next stage of our growth and development."

The announcement will provide a boost to the London Stock Exchange after London-based Candy Crush creator King dealt a blow last month when it announced it is hoping to raise $500 million in New York.

The London Stock Exchange declined to comment on the announcement, but earlier this year, Marcus Stuttard who heads up the UK Primary Markets and the Alternative Investment Market (AIM) at the 213-year-old London Stock Exchange, told Techworld that start-ups can raise just as much money in London as they can in New York.

"I simply don’t accept that there is more capital available elsewhere for UK tech businesses," he said at the time, after critics said tech firms can raise up to three times as much in the US.

Other tech companies to list, or announce plans to list, on the London Stock Exchange in 2014 include mobile phone operator Manx Telecom,

Last year, a number of reforms were introduced by government, the London Stock Exchange and Tech City UK to make London a more desirable place to list for fast-growing technology companies.

For example, a new market was created on the London Stock Exchange called the High Growth Segment, while Tech City UK revealed 50 fast-growing tech companies it wants to work with through the Future Fifty programme.

In a sign that suggests some of these reforms may be working, Just Eat said it would either list shares on the the newly-introduced High Growth Segment, or the exchange's Premium Market.

Venture capital firm backers SM Trust, Index Ventures, Vitruvian Partners, Redpoint Ventures and Greylock Partners are all expected to sell a proportion of their shareholding as part of the listing.

The company estimated that delivery takeaway food market was worth £58bn in 2013.

This story, "Just Eat joins tech IPO queue, aims to raise £100m" was originally published by Techworld.com.

Copyright © 2014 IDG Communications, Inc.

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