Just Eat joins London IPO rush with £100m float

Flotation could value the online takeaway service between £700m and £900m

Online takeaway food service Just Eat has announced plans to raise £100 million of fresh capital when it joins the stock market through a flotation which analysts said could value it between £700 million and £900 million.

That means the company, which handled 40 million meal orders last year, could be valued at more than 50 times its core earnings of £14.1 million.

Just Eat could also become the first initial public offering to take advantage of the new High Growth segment of the London Stock Exchange, which has been supported by the Government as a way to keep new hi-tech companies in this country by allowing them to sell fewer shares to get a listing.

Chief executive David Buttress, 38, said: “We qualify for both a premium listing or a High Growth one. We will decide nearer the time.”

Just Eat expects to issue a prospectus next month. Buttress would not give details but he and finance director Michael Wroe will become paper millionaires through the float. Private equity backers SM Trust, Index Ventures, Vitruvian Partners, Redpoint Ventures and Greylock Partners will all cash in some shares but also retain stakes.

Just Eat was founded in Denmark in 2001 and Burgess set up the UK operation in 2006. It now operates in another 11 countries and has plans to expand futher.

The Danes now order virtually half their takeaways online while in Britain it is only 20% and in most other countries less than 10%. “That gives a scale of the potential growth,” said Burgess. “At the moment our biggest competitor is the phone because that is still how most people order.”

Just Eat makes it money by charging restaurants an initial sign-up fee (£699 in the UK) which partly pays for the technology they need to process orders. It then charges an average 11 per cent commission on meals ordered through the system. That worked out at an average £2.11 per meal in 2013 up from £2 in 2013. Total revenues rose 62 per cent last year to £96.7 million.

Burgess pointed out that online orderers spend on average 30 per cent more than those using the phone. He said: “People browse the whole menu rather than each person in the family just shouting out their usual favourite dish so they tend to order more dishes.”

Just Eat has beefed up its  board today with the arrival of BSkyB finance director Andrew Griffith and former Sainsbury’s director Gwyn Burr as non-executives.

Start your day with The Independent, sign up for daily news emails
Sport
The Aviva Premiership trophy
rugby union All the latest from Twickenham
Life and Style
tech
Sport
Aston Villa manager Tim Sherwood
footballDanny Higginbotham: Tim Sherwood must play game of two halves to cause major upset
News
Caber is trained to help child victims of serious crimes testify
news
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Pricing Analyst

£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...

Guru Careers: C# Project Team Lead

£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...

Day In a Page

Fifa corruption: The 161-page dossier that exposes the organisation's dark heart

The 161-page dossier that exposes Fifa's dark heart

How did a group of corrupt officials turn football’s governing body into what was, in essence, a criminal enterprise? Chris Green and David Connett reveal all
Mediterranean migrant crisis: 'If Europe thinks bombing boats will stop smuggling, it will not. We will defend ourselves,' says Tripoli PM

Exclusive interview with Tripoli PM Khalifa al-Ghweil

'If Europe thinks bombing boats will stop smuggling, it will not. We will defend ourselves'
Raymond Chandler's Los Angeles: How the author foretold the Californian water crisis

Raymond Chandler's Los Angeles

How the author foretold the Californian water crisis
Chinese artist who posted funny image of President Xi Jinping facing five years in prison as authorities crackdown on dissent in the arts

Art attack

Chinese artist who posted funny image of President Xi Jinping facing five years in prison
Marc Jacobs is putting Cher in the limelight as the face of his latest campaign

Cher is the new face of Marc Jacobs

Alexander Fury explains why designers are turning to august stars to front their lines
Parents of six-year-old who beat leukaemia plan to climb Ben Nevis for cancer charity

'I'm climbing Ben Nevis for my daughter'

Karen Attwood's young daughter Yasmin beat cancer. Now her family is about to take on a new challenge - scaling Ben Nevis to help other children
10 best wedding gift ideas

It's that time of year again... 10 best wedding gift ideas

Forget that fancy toaster, we've gone off-list to find memorable gifts that will last a lifetime
Paul Scholes column: With the Premier League over for another year, here are my end of season awards

Paul Scholes column

With the Premier League over for another year, here are my end of season awards
Heysel disaster 30th anniversary: Liverpool have seen too much tragedy to forget fateful day in Belgium

Liverpool have seen too much tragedy to forget Heysel

Thirty years ago, 39 fans waiting to watch a European Cup final died as a result of a fatal cocktail of circumstances. Ian Herbert looks at how a club dealt with this tragedy
Amir Khan vs Chris Algieri: Khan’s audition for Floyd Mayweather may turn into a no-win situation, says Frank Warren

Khan’s audition for Mayweather may turn into a no-win situation

The Bolton fighter could be damned if he dazzles and damned if he doesn’t against Algieri, the man last seen being decked six times by Pacquiao, says Frank Warren
Blundering Tony Blair quits as Middle East peace envoy – only Israel will miss him

Blundering Blair quits as Middle East peace envoy – only Israel will miss him

For Arabs – and for Britons who lost their loved ones in his shambolic war in Iraq – his appointment was an insult, says Robert Fisk
Fifa corruption arrests: All hail the Feds for riding to football's rescue

Fifa corruption arrests

All hail the Feds for riding to football's rescue, says Ian Herbert
Isis in Syria: The Kurdish enclave still resisting the tyranny of President Assad and militant fighters

The Kurdish enclave still resisting the tyranny of Assad and Isis

In Syrian Kurdish cantons along the Turkish border, the progressive aims of the 2011 uprising are being enacted despite the war. Patrick Cockburn returns to Amuda
How I survived Cambodia's Killing Fields: Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape the US

How I survived Cambodia's Killing Fields

Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape to the US
Stephen Mangan interview: From posh buffoon to pregnant dad, the actor has quite a range

How Stephen Mangan got his range

Posh buffoon, hapless writer, pregnant dad - Mangan is certainly a versatile actor