Deliveroo dives 30% as IPO flops

About as well received as a cold takeaway...

Deliveroo shares made their market debut Wednesday (March 31), and promptly plunged as much as 30%.

The float had valued the company at 7.6 billion pounds, or close to $10.5 billion.

But Deliveroo lost $3.1 billion of its value within minutes of the market open.

That made it one of the biggest debut falls for a major company on the London market for years.

A number of major UK fund managers - including Aviva and Aberdeen Standard Life - had said they would avoid investing in the British company.

They were put off by a share structure that gives outsize voting rights to founder Will Shu.

They also cited the firm's gig economy business model, which has drawn criticism over workers' rights.

The IPO was London's biggest since Glencore in May 2011, and the biggest tech float ever on the London Stock Exchange.

Now the disappointing open could be a blow to UK finance minister Rishi Sunak - who has aimed to attract more tech firms to London.

One analyst told Reuters it could also hurt the market for IPOs in the UK and Europe.