Just Eat valued at £1.5bn

The Vitruvian-backed restaurant delivery business is expected to raise £360m in an IPO.

Just Eat, an online marketplace for restaurant delivery, has been listed on the High Growth Segment (HGS) of the London Stock Exchange with a market value of £1.47 billion (€1.77 billion, $2.45 billion).

The business, which is backed by a consortium including UK-based buyout firm Vitruvian Partners and venture capital firms Index Ventures, Redpoint Ventures, SM Trust and Greylock Partners, is expected to raise gross proceeds of £360.1 million with a 260p share price, according to a statement.

Just Eat will receive £100 million of gross proceeds from the listing. The owners plan to divest 24.6 percent which may go up to 26.4 percent if an over-allotment option is used.

Just Eat will start trading on 8 April and become the first company to list on the HGS, which was launched last February as a potential rival to the US’ NASDAQ. The exchange sees it as a stepping stone to the main market, aimed at medium-sized companies valued at between £300 million and £600 million that show fast revenue growth.

“I believe that Just Eat is one of the most exciting global growth companies in Europe and we are all delighted at the strong levels of investor interest we have seen in our initial public offering. I believe that investors have recognised our track record of strong growth and that we have a strong platform for future growth,” David Buttress, chief executive of Just Eat, said in the statement.

Goldman Sachs and J.P. Morgan Cazenove acted as joint global co-ordinators and joint bookrunners. J.P. Morgan Cazenove acted as the key adviser to Just Eat, while Oakley Capital Limited acted as co-lead manager. 

At press time, Just Eat shares were up to 274p, up 5.4 percent.

It is understood Vitruvian owns 14.4 percent of the business. Together with the venture firms, Vitruvian invested €48 million in Just Eat in April 2012, according to Vitruvian’s website. The firm declined to comment.

Vitruvian specialises in mid-market buyouts and growth capital investments in the UK and Northern Europe, typically targeting equity investments of £25 million to £125 million in companies with an enterprise value of £40 million to £250 million. It typically targets business services, information technology, media, telecoms, financial services and healthcare.

The firm is currently investing its second fund, Vitruvian Investment Partnership II, which closed on its £1 billion hard-cap (€1.2 billion, $1.6 billion) last December.