The flotation of Deliveroo on Wednesday will value the company at £7.6bn after concerns over workers’ rights and volatile stock markets chipped more than £1bn off the top-end valuation. Last week, the meal delivery service said its initial public offering could value the company at as much as £8.8bn. However, on Tuesday the company confirmed its shares had been priced at £3.90, which is the bottom of the range it had set out. The price will give the company a market capitalisation of £7.6bn when the shares begin trading on Wednesday. Although the listing is still expected to be biggest initial public offering in London for a decade, a number of leading fund managers are avoiding the shares owing to concerns about Deliveroo’s labour practices, which do not guarantee minimum pay rates for its couriers. Along with other operators in the gig economy, Deliveroo, which is backed by Amazon, has faced legal challenges around the world from couriers and drivers seeking access to basic rights, such as minimum wages and holiday pay. The listing will raise £1bn for the company and £500m for selling shareholders, including Amazon and Will Shu, the former investment banker who launched the service from his London flat in 2013. Deliveroo has benefited from a surge in food home deliveries during the pandemic. On the back of the most recent lockdown the company said the total value of transactions processed on its platform increased by 130% year on year in January in the UK and Ireland, and by 112% in other markets. The company said it had received “very significant demand from institutions across the globe” for its shares, adding. “The deal is covered multiple times throughout the range, led by three highly respected anchor investors,” it said in a statement. It added: “Given volatile global market conditions for IPOs, Deliveroo is choosing to price responsibly and at an entry point that maximises long-term value for our new institutional and retail investors.” Deliveroo has also given users of its service the chance to buy a piece of the company, setting aside £50m of shares for customers to buy. However, they will not be able to begin trading until next week when unconditional dealings begin.