UK and European investors have overwhelmingly shunned Deliveroo, with data showing that just four out of 18,000 mutual funds in the continent have invested in the food-delivery company since its disastrous initial public offering in March.
Deliveroo’s IPO was dubbed the worst in London’s history after its share price fell 26 per cent on its opening day. Two months on, its shares are still trading at more than a third below their 390p listing price, closing on Friday at 251p.
Investors spoke out ahead of the IPO saying they would avoid the company because of concerns over its dual-class share listing, governance and labour standards.
According to data from Morningstar, the only UK-domiciled fund to disclose it had invested in Deliveroo is managed by River and Mercantile for the wealth manager AFH Group. The other three funds to hold the stock are Spain-based Enginyers Accions Europa fund and two Europe-domiciled funds from Morgan Stanley and Franklin Templeton.
Almost all mutual funds that backed Deliveroo are domiciled in North America, including funds from Fidelity, T Rowe Price and Federated Hermes, according to Morningstar.
Tom Powdrill, head of stewardship at Pirc, the UK proxy adviser, said it was "striking that those closer to the action – both in terms of the listing and where Deliveroo does much of its business – are far less likely to invest" in the London-based company. – Copyright The Financial Times Limited 2021