JUST EAT shares soar on first day of trading

JUST EAT saw their share price briefly rise over 10% on their opening day of trading.

The IPO listed the shares at 260p, giving the company a value of £1.47bn.

Shares peaked just below £3 at 297.96p before finishing the day up 8.85% at 283p.

It left JUST EAT finishing their first day of trading valued £1.59bn, over one hundred times their underlying earnings of £14.1m.

JUST EAT will receive £100m million from the flotation, with the rest going to their investors.

David Buttress, chief executive of JUST EAT said:

I believe that investors have recognised our track record of strong growth and that we have a strong platform for future growth.

New IPO territory

JUST EAT were the first firm to float on the London Stock Exchange’s hotly anticipated High Growth segment.

This allows companies to issue as little as 10% of the shares when they float, instead of the normal minimum quantity of 25%.

The takeaway company expects a free float of 24.6%. As a result, it is unlikely that they will stay on the High Growth Segment for long.

Their successful IPO will offer encouragement to other companies considering floating on the new segment of the London market.