Deliveroo shares push higher as retail investors start trading the stock

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LSEG-GBHFG-DEOCDO-GBTKWY-NLDHER-DEDASHAMZNROO-GBA Deliveroo courier rides along Regent Street delivering takeaway food in central London during Covid-19 Tier 4 restrictions.Pietro Recchia | SOPA Images | LightRocket via Getty Images

LONDON — Shares of Amazon-backed food delivery firm Deliveroo climbed by around 3% on Wednesday morning as retail investors started trading the company’s stock for the first time.

The company’s share price jumped from £2.80 ($3.86) to £2.91 in early deals on the London Stock Exchange, before dipping again to £2.85.

Some 70,000 Deliveroo customers purchased between £250 and £1,000 worth of Deliveroo shares at the £3.90 issue price before its initial listing last Wednesday. In total, Deliveroo sold £50 million worth of stock to retail investors through a platform called PrimaryBid.

However, due to conditional trading restrictions, these loyal customers were locked into their positions until Wednesday this week. As a result, they’ve had to sit back and watch Deliveroo’s share price crash by around 30%, with the biggest decline happening on the morning of the company’s market debut.

Some retail investors told CNBC last Thursday that they’d lost hundreds of pounds in the IPO and that they regretted their investments.

“I wish they had let the conditional week happen to settle the price and then placed our shares when we could actually trade them,” one investor told CNBC.

Another said they planned to keep their shares for now and hope they rise in price in a few months. “Not much you can do with them at this price,” they said.

Susannah Streeter, a senior investment and markets analyst at share trading platform Hargreaves Lansdown, said in a note on Wednesday that Deliveroo’s share price is being driven up by new retail investors.

“This will be some comfort for Deliveroo customers who were encouraged to buy a slice of the company but appeared to have thrown the dice on a disastrous debut,” she said. “Like a fateful round of Monopoly they were locked out of selling their shares for a week, while the company’s initial valuation fell sharply.”

“Now they finally have a ‘get out of jail’ card, but it seems for now that many have kept it in their