Deliveroo founder Shu's shares to have 20 votes

Deliveroo founder Will Shu's shares will have 20 votes each under a contentious dual-share structure for the company's initial public offering.

Announcing its expected intention to float, Deliveroo said it would have two classes of shares - A and B. Shu will be the only holder of B shares and he will have 20 votes for each share compared with one vote for holders of A shares.

Only A shares will be offered in the IPO, which is set to value Deliveroo at about £7bn, and admitted for trading. After three years the B shares will automatically become A shares.

Deliveroo said it incurred a £223.7m underlying loss in 2020, narrowed from a £317.3m loss a year earlier. Total transactions rose 64% to £4.1bn and underlying gross profit rose 90% to £357.5m.

The company chose London for its IPO on 4 March after a review of listing rules recommended letting company founders have shares with more rights than those sold to other investors. The proposal is designed to help London compete for big tech IPOs run by founders but critics have said the changes could undermine governance and the market's integrity.

The company announced its plan for a dual-share structure with the Financial Conduct Authority yet to approve the change, put forward in a report last week and welcomed by Chancellor Rishi Sunak. Deliveroo also said it would allow customers to take part in the IPO.

Shu founded the company in 2013 and was its first delivery rider. It now operates in a dozen markets in Europe, Asia and the Middle East. Deliveroo has faced controversy about working conditions for its riders, who operate in the so-called gig economy.

He said: "We are planning to take Deliveroo public here in London, the city where it all started - and we plan to offer our customers across the UK the chance to own a part of the business."