The German stock exchange is getting ready for its biggest tech IPO in three years. Delivery Hero AG is set to go public on June 30th, and is being valued from 22 euros to 25.50 euros apiece. The company plans to sell up to 39 million shares, and expects to raise as much as half billion euros as a result from their median price point.
With the current valuation placing it at a respectable 4.39 billion euros, this is looking to be a positive in an otherwise bleak startup scene for Germany. In a testament to as much, Rocket Internet SE, Delivery Hero’s backer, has not had a successful IPO since Zelando SE in 2014. However, Rocket Internet’s stock is rising as the news of a successful public offering is garnering attention.
The market for Delivery Hero is a tough one though, with food delivery and takeaway being seen as a winner take all market. It does have the advantage over competition like Uber Eats and Grubhub, by being active in 42 markets, as well as having a deal with roughly 150,000 restaurants. The company operates a variety of brands that range from bike food delivery to brokering the delivery by the restaurant to a customer’s address. The money gained from the public offering is intended to be spent on further developing the brand and acquisitions that will help solidify it as a top-choice in the sector, with the top brass hoping to carve out a niche on their user’s smart devices.