(Adds quote, valuation details, comparisons, background, share
LONDON, April 3 Shares in online takeaway firm
Just-Eat Group rose as much as 10 percent above their
offer price on their first day of trading in London on Thursday,
valuing the company at more than 1.5 billion pounds ($2.56
The London-based company, founded in Denmark in 2001, last
year processed more than 40 million orders for 36,000 takeaway
outlets in 13 markets, the largest of which were Britain,
Denmark, France, Canada, Ireland and Spain.
Just-Eat priced its shares at 260 pence each. It sold about
a quarter of the company's equity.
Chief Executive David Buttress said he was delighted at the
strong demand from investors and by 1030 GMT the shares were up
5 percent to 273 pence, giving it a valuation of around 1.54
In contrast, Domino's Pizza Group, Britain's biggest
pizza delivery company with more than 860 stores and pretax
profit in 2013 of 47.6 million pounds, has a stock market value
of about 870 million pounds.
Just-Eat, which says it is the world's largest online
marketplace for restaurant delivery, plans to use the funds to
expand. In 2013 it grew revenue by 62 percent to 96.8 million
pounds and core earnings rose 518 percent to 14.1 million pounds
compared with 2012.
It is the latest in a wave of IPOs across Europe, and
companies such as AO World, the online domestic
appliances retailer, and boohoo.com, an internet
fashion retailer, also saw their shares surge above their offer
prices on their market debut.
The listing also marks the first IPO for London Stock
Exchange's High Growth Segment, a initiative launched
last year tailored to meet the needs of high growth technology
Just Eat said it will receive 100 million pounds of gross
proceeds from the offer, while much of the rest will go to
backers such as SM Trust, Index Ventures, Vitruvian Partners,
Redpoint Ventures, Greylock Partners and the company's
management and employees who will sell down their shareholdings.
($1 = 0.6012 British Pounds)
(Reporting by Paul Sandle and Neil Maidment; Editing by Elaine
Hardcastle; Editing by Brenda Goh and Elaine Hardcastle)