Having at one point said it could reach £ 8.8bn, it announced today that it will be floating this week at £ 7.6bn, or 390p per share.
The company revised the price range yesterday to 390p-410p, after initially setting it at 390p-460p.
The list will still be the biggest floating in London for a decade, but has sparked a row over workers’ rights in the odd-job economy.
Deliveroo refused to recognize its riders as “employees”, with all the benefits such as sick pay and paid time off. Instead, he says they are self-employed.
A growing number of large investment firms, from M&G to Aviva, have refused to back the IPO on the grounds that regulators would not order it to switch to more expensive employment contracts.
Deliveroo yesterday reduced the upper range of its potential IPO price from £ 8.8bn to £ 7.85bn, but today’s decision to go for an even lower price will lift eyebrows at the progress of the IPO.
Last week the company said it had received enough orders from investors for the float to be fully supported up to £ 8.8 billion.
While many townspeople say they opted for the lower price because of investor concerns over the issue of working conditions, Deliveroo said this was due to unstable markets and a desire to avoid a situation where stocks would fall after the IPO.
That was the fate of Trustpilot, whose stock fell below its floating price last week.
Yesterday, shares of rival delivery companies Delivery Hero and Just Eat Takeaway fell 2.5% and 1.5% respectively as part of a broader sell-off of the tech companies.