Analysis: Deliveroo's flop a wake-up call for tech hopefuls

MILAN/LONDON: A dismal London stock market debut for Deliveroo, coming on the heels of other lukewarm listings, may be a sign that investors are becoming more discerning when it comes to buying shares in companies that have yet to turn a profit.

Recent market entrants in Europe include Polish e-commerce logistics firm InPost which debuted strongly in Amsterdam but is now trading 10per cent below its listing price and online reviews platform Trustpilot which listed in London and fell below its offer price on its second trading day. Cloud platform DigitalOcean sank 12per cent on its Wall Street debut last week.

"Pricing has often been opportunistic and in most of the cases funds, managers and companies were selling existing shares, meaning that proceeds did not go to fund any expansion plans," he added. "The pipeline is very heavy, which is a sign of dynamism. But because it's very crowded, investors are likely to be more selective," said Eric Arnould, head of equity capital markets for Natixis.

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