Delivery Hero to sell upto 39 million shares in its IPO

Online food delivery startup, Delivery Hero said it would sell up to 39 million shares in its initial public offering (IPO), raising around 927 million euros ($1.04 billion). The proceeds from the IPO will be used to help Delivery Hero grow and expand as it looks to take on US tech giants that are entering the takeaway market such as Uber and Amazon.

Delivery Hero will become the fourth major online food delivery firm to go public in recent years globally, following Grub Hub, Just Eat and Takeaway.com,which have all seen their shares soar since listing.

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.

The listing will provide a much-needed boost to struggling Rocket Internet, which holds a 35 percent stake in Delivery Hero, making it the biggest holding in its portfolio.

An additional 5.1 million shares indirectly held by Rocket could be placed in an over-allotment, Delivery Hero said.