Deliveroo is planning to raise £1bn from its stock market flotation. The meal delivery company confirmed the fundraising target for the first time, adding that the initial public offering (IPO) would mean selling newly issued and existing shares from some of its current investors on the London market. While the IPO is expected to value the company at more than £5bn, the formal valuation will not be clear until Deliveroo sets the price at which it intends to sell shares and the number of shares in the offer. Deliveroo’s IPO plans were revealed earlier this month, only days after the UK government committed to changing rules that would allow founders, such as Deliveroo’s Will Shu, to keep control of their companies despite selling shares to investors on the stock market. The company is expected to take advantage of a dual-class share structure – split into class A and class B shares – which will last for three years and temporarily strip investors of typical ownership rights. The London-based firm said on Monday that its class B shares would be held solely by Shu, who also serves as the company’s chief executive. It means that when shareholder votes are held, Shu will be granted 20 votes per share, versus one vote per share for regular investors. According to documents released last week, Shu owns a 6.2% stake, which is worth about £308m. He has also been awarded thousands more shares, which could boost the number he owns in the company by almost 30% over the next four years. Delivery platforms such as Deliveroo have benefited during the Covid-19 pandemic, which forced restaurants to close to indoor dining and turn to delivery and takeout services during lockdowns. Deliveroo, which serves 6 million customers across 12 markets around the world from 115,000 restaurants, has said it is tapping into a grocery and dining market worth almost £1.2tn.