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Fund managers express doubts ahead of Deliveroo’s IPO

The investment case for the food delivery app may not be as tasty as it seems
March 30, 2021
  • A growing list of institutional investors including Aberdeen Standard and Legal & General will not be investing in Deliveroo
  • Concerns include employment rights and the dual-class share structure

Hailed as a “true British tech success story” by chancellor Rishi Sunak, Deliveroo is shaping up to be London’s biggest IPO since miner Glencore (GLEN) went public in 2011.

But the food delivery platform has recently come under pressure after a raft of institutional investors announced that they would not be investing in the company. As asset managers increasingly adopt ‘environmental, social and governance’ (ESG) investment criteria, it appears that the Amazon (US:AMZN)-backed unicorn does not pass their taste test.

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