FRANKFURT AM MAIN: Germany-based online food ordering service Delivery Hero said Tuesday it plans a Frankfurt stock market flotation this year, saying investors’ cash will help it expand further around the world.
The firm said in a statement it aims to raise around 450 million euros ($506 million) “in the coming months” from new shares issued in a capital increase, while some shares held by existing investors will also be on sale.
Notorious Berlin start-up incubator Rocket Internet, itself listed on the Frankfurt exchange, indirectly owns some 35 percent of Delivery Hero.
The company reported revenues of 347 million euros in 2016, up 71 percent on 2015’s figure.
Nevertheless, the growth did not help it avoid an adjusted operating, or underlying loss of 116 million euros last year.
A flotation would “further enable us to develop the company and expand our leadership positions in the food ordering and delivery market,” chief executive Niklas Oestberg said.
Launched in 2011, Delivery Hero employs more than 6,000 people and “thousands” of delivery drivers in 40 countries, offering online food ordering and delivery from restaurants.
The global food ordering market is competitive, with Delivery Hero facing competition in many markets from Berlin-based Foodora and Britain’s Deliveroo — as well as start-up goliath Uber.
Shares in Rocket Internet slipped slightly in morning trading in Frankfurt, losing 1.1 percent to trade at 21.40 euros by 0830 GMT.