"Legal and General joins investors shunning Deliveroo IPO"
"Food delivery group faces backlash against working practices and shareholder structure"
"The UK’s largest fund manager has become the latest big investor to say it plans to skip Deliveroo’s initial public offering next week as a backlash gathers pace against its dual-class share structure and its treatment of workers. Legal and General Investment Management, which oversees £1.3tn in assets, told the Financial Times it was “unlikely to participate” in the IPO, either in its active or passive portfolios.
A number of large institutional investors have voiced concerns around the proposed shareholder structure, which will give Deliveroo’s founder enhanced voting power. Some also see potential regulatory risk as governments around the world take a closer look at the gig economy model, further threatening the food delivery company’s ability to turn a profit.
M&G, Aberdeen Standard Investments and Aviva Investors, which collectively oversee more than £1tn in assets, have told the Financial Times they will shun next week’s listing, which is expected to be the UK’s largest IPO in a decade. Several smaller fund houses that invest heavily in UK stocks are also planning to avoid it."
Bit of a kick in the teeth for people who like to profit by abusing the working class.
Must be an election coming along
"Deliveroo has also faced growing questions about its treatment of the 100,000 couriers who deliver its orders. A study by the Bureau of Investigative Journalism and the Independent Workers’ Union of Great Britain found that, on an hourly basis, many Deliveroo couriers in the UK were paid less than the minimum wage."
