Amazon is set to reduce its stake in British food delivery company Deliveroo to 11.5% in its next initial public offering (IPO) from 15.8% previously, according to a company bulletin carried by Reuters.
Deliveroo this week launched its IPO promotions in London and set a price range between 3.90 and 4.60 pounds per share, which would give it a market value of between 7.6 billion and 8.8 billion pounds ($ 10.46 billion – $ 12.11 billion).
This includes selling new shares to raise one billion pounds and about 128.2 million shares from current shareholders, at the final price.
According to the prospectus, Amazon is set to drop 23.3 million shares as part of this, allowing the tech giant to raise between 90.87 million and 107.18 million pounds from the deal.
Amazon raised its stake in Deliveroo to 16% last year in a deal that had to be cleared by the UK’s competition watchdog, and participated in a $ 180 million private financing round in January that estimated the company at more than $ 7 billion.