Online food takeaway company Delivery Hero appeared to whet investors' appetite on Friday as its shares surged higher on the company's stock market debut.
"I'm glad we have had a good start but this is really about the long term… (it's) about the next 10 to 15 years to build a very good service," CEO Niklas Ostberg told CNBC on Friday.
The company's shares rose over 3 percent shortly after Friday's opening bell. The start-up had priced its initial public offering (IPO) at top end of the price range, in order to raise around 1 billion euros ($1.14 billion). On Wednesday, it placed almost 19 million new shares and 15 million existing shares on the Frankfurt Stock Exchange at $25.50 a share.
The loss-making German firm is set to trade at a premium in comparison to its peers, a move which had split opinion among analysts assessing its profitability. While some traders have pointed to Delivery Hero's larger global footprint as reason to justify its premium rate, others have warned the company could be vulnerable to sustaining heavy losses.
When asked how the firm planned to soothe investor concerns regarding the start-up's loss-making track record and premium rates, Ostberg replied, "I think we will continue to go for growth… we also see that our customers are very, very sticky. They stick with us for years and years and years and order more and more frequently and I think that's what investors really like."