Will Shu, the founder of Deliveroo, will have access to time-limited dual-class shares when his company makes its public bow in London.
The introduction of the share structure was touted by Lord Hill in his review of London’s listing criteria, which was released this week. Chancellor Rishi Sunak later endorsed his recommendations.
Lord Hill recommended that the UK introduce the shares, which give founders more control over the decision-making of their company.
In a statement on Thursday morning, Deliveroo said the shares would give Mr Shu the “stability” to take decisions that would allow the company to fulfil its long-term vision.
Deliveroo said the dual-class shares will be limited to three years, after which point the company will move to a “traditional single class structure”.
In announcing the decision to list in London, Mr Shu said Deliveroo had been “born” in the city.
“At Deliveroo we want to be the definitive food company, bringing consumers the best choice of foods, giving restaurants new opportunities to grow their businesses, and providing riders with great work,” he said.
“We are always focused on developing the best proposition for consumers, restaurants and riders and look forward to bringing our service to new parts of the UK as we continue to grow.”
Lord Hill said that it was “obviously great news” that Deliveroo had chosen to list in the City.
“One of the whole points of our Listing Review was to encourage more of the growth companies of the future to list in London,” he said.
“The changes we recommended would make it easier for more companies to follow Deliveroo’s lead, sending out a message that London is open for business.”
Chancellor Rishi Sunak said the UK was one of the “best places in the world” to grow a business.
“That’s why we are looking at reforms to encourage even more high growth, dynamic businesses to list in the UK,” he said.
“So it’s fantastic that Deliveroo has taken this decision to list on the London Stock Exchange. Deliveroo has created thousands of jobs and is a true British tech success story.”
Deliveroo’s announcement came after a strong year for the firm, which reported six months of consecutive profits throughout 2020.
The company plans to aggressively expand its Editions delivery-only kitchens, as well as its on-demand grocery offerings.