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Just Eat prepares London IPO

Article By: ,  Financial Analyst
January 24, 2014 11:15 AM

Online takeaway food delivery company Just Eat is preparing for an initial public offering (IPO) in London, with the firm having been valued in the region of £700 million to £900 million.

The company is one of ecommerce's major success stories in the last few years and is now looking to cash in on its progress through the impending IPO, reports the Financial Times.

Just Eat is looking at April or May as a potential time to launch the IPO, with the firm's valuation currently placed at approximately 70 to 90 times its projected 2013 earnings.

However, figures such as these have not held back other internet companies in recent years, with both Twitter and Facebook going through massive IPOs in the US that valued the firms at billions of pounds apiece. The valuation placed on Just Eat would make it one of the largest technology stocks in London.

Valuation explained

George O'Connor, analyst at Panmure Gordon, said: "It's a super-premium to the sector at large. Technology companies attract certain ratings which others are jealous of. The essence of disruption for Just Eat will be its ability to bridge the gap between pure technology and being an ordering system."

David Buttress, the group's chief executive who joined Just Eat from Coca-Cola eight years ago, would be among those set to make a fortune from the IPO if it goes ahead in the spring as expected. Others who would be expected to profit include Michael Wroe, the chief financial officer, and Klaus Nyengaard, the former head of the company.

Just Eat's finances have been boosted by investments from firms such as Vitruvian Partners, Index Ventures, Greylock Partners and Redpoint Ventures, so these would all be in line to benefit from the firm launching an IPO in London this year as well.

JPMorgan and Goldman Sachs have been appointed to advise Just Eat on the upcoming London IPO, but the company declined to comment when contacted by the Financial Times.

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