- Delivery Hero has priced its initial public offering (IPO) at a range between 22 euros to 25.50 euros per share.
- The offering could raise as much as 995.6 million euros ($1.1 billion).
- Delivery Hero said it would use the proceeds to repay loans and to finance growth.
Online food takeaway company Delivery Hero priced its initial public offering (IPO) on Monday which could raise it as much as 995.6 million euros ($1.1 billion).
The German firm set the price range at 22 euros to 25.50 euros per share and is expected to begin trading on the Frankfurt Stock Exchange on June 30.
Delivery Hero's offering will consist of 18,950,000 new ordinary registered shares and of 15,000,000 existing ordinary registered shares from the holdings of certain current shareholders. Investors may also have access to another 5,092,500 "over-allotment" shares.
At the mid-point of the price range, gross proceeds from the offering of newly issued shares would amount to approximately 450 million euros. But assuming full placement of all offered shares at the upper end of the price range, including the over-allotment shares, the total size of the IPO would amount to around 995.6 million euros.
Delivery Hero will use the funds to repay loans and to finance the growth and development of its business, it said.
The online food and delivery space has become increasingly competitive with new players such as Uber and Amazon entering the sector while existing rivals Deliveroo and Just Eat continue to expand. Delivery Hero, which was founded in 2011, operates in over 40 markets globally and has around 150,000 restaurants on its platform.
Delivery Hero saw revenues grow 79 percent year-on-year to 297 million euros in 2016. It processed 171 million orders in 2016, up from 103 million the year before. The German firm has not released figures on profit, but CEO Niklas Ostberg told CNBC in an interview in March that the company is not profitable, especially after it acquired rival business Foodpanda last year.
Acquisitions have been a key part of Delivery Hero's growth strategy. In 2015, it bought Talabat.com, an online food takeaway firm based in Kuwait, followed by Yemeksepeti in Turkey. The acquisition of Foodora followed shortly after.
"The expected launch of our IPO is an important and exciting next step for us. We will continue our successful journey as a listed company and will seek to further expand our global leadership position in the online food ordering and delivery market," Ostberg said in a press release on Monday.
The IPO will give a boost to Rocket Internet, a publicly-listed start-up factory which owns around a 35 percent stake in Delivery Hero. Rocket Internet invests in start-ups and has a number of companies in its portfolio, but it has struggled to turn a profit.
Delivery Hero said the offer period for its shares is expected to begin on June 20 and to end on June 28. The final number of shares issued will be announced on June 28.