Most small punters knew they were taking an investment risk, so it was up to them to decide if the price was overcooked
The sole uplifting element in Deliveroo’s £7.6bn flotation won’t feel like such a good idea now. Private investors, who had to be customers, were given the chance to buy shares directly, which is unusual in IPOs these days. About 70,000 were allocated shares and, at an average lot size of £714, they are currently looking at a paper loss of almost £200, enough to spoil any takeaway.
Social media, inevitably, is furious about the “flopperoo”, which may make companies coming to the stock market think twice about inviting small investors to buy. As it is, they can expect their investment bankers to whisper about how retail IPOs are fiddly and how the intentions of hedge funds, love them or loathe them, are easier to read.
