Just-Eat considering tasty London IPO

IPO WATCH: A listing by the online takeaway website would ease pressure on the London Stock Exchange to attract high growth tech companies.

by Rachel Savage
Last Updated: 25 Feb 2014

Online takeaway service Just-Eat could be the first company to list on the London Stock Exchange’s high-growth segment (HGS), which hasn’t attracted a single IPO since it was launched in February last year.

The website, which was launched in Denmark in 2001, is thinking about selling off only 10% in an initial share sale that would value it at between £700m and £900m, according to City AM. That compares to the usual 25% floated in a main market listing.

Just-Eat, which is majority-owned by Vitruvian Partners and Index Ventures, has got Goldman Sachs and JP Morgan on board to advise on the potential IPO. The platform for takeaways, which operates in 13 countries around the world, could be floating (wild and free) by April, City AM said.

The site expected its revenues to be £100m last year, according to internal estimates from the last quarter of 2013 seen by the Financial Times. That would be a hefty rise from the £59.8m it made in 2012, when its pre-tax loss was £2.6m.

While a final decision has apparently not yet been taken, a Just-Eat listing would ease some of the pressure on the London Stock Exchange, which has failed to attracted fast-growing tech companies despite rolling out the HGS. King, the London-based maker of viral mobile game Candy Crush, announced last week that it had plumped for a New York IPO.

If Just-Eat gives a share sale the go ahead, LSE will be hoping that more companies follow their stomachs.

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