Online takeaway service Just Eat started trading on the London Stock Exchange at 260p per share, totaling £1.47bn.
This marks the first business listed on the London ‘High Growth Segment’, which allows businesses to list less than the current 25% necessary to list on the stock exchange and introduces a minimum of only 10%. It is believed that the takeaway giant listed slightly under 25% to be made available to new investors.
Just Eat is an online takeaway service which originally started in Denmark in the early 2000s and has since dominated the market of online takeaways outside of the US. The service it provides allows customers to order from a variety of takeaways in the local area and request delivery, which can then be paid directly through the service via credit/debit cards or cash on delivery. The site is the most popular of its kind and claims to have almost 6m active users.
David Buttress, Chief Executive Officer, described Just Eat as “the WhatsApp of takeaway,”
An estimated 35,000 restaurants currently make use of the services provided by the business, across much of Europe, Canada, India, Brazil, and the UK. Just Eat generated profits of over £95m in 2013, an increase of 60% from the previous year. GrubHub is the equivalent service available in the United States, which boasts links to a quarter of a million restaurants. Following the announcement of Just Eat’s flotation on the market the US competitor raised pricing in expectation and preparation of investors rushing to the stock on exchange.
£100m is being raised for the business and upwards of £250m for shareholders, reportedly the funds will be used to make purchases and investments in the industry to secure their position as the sector leader across the UK and Europe – with potential links to providing hardware such as access terminals to restaurants and live-tracking for orders.