U.K. food delivery company Deliveroo, slated to launch its initial public offering (IPO) next Wednesday, April 7, on the London Stock Exchange, now says its starting valuation might be lower than initially forecast. Down from an original $12.1 billion estimate at the high end, the company now says its highest possible IPO market cap will be $10.8 billion. The low-end estimate remains at $10.5 billion.
The lower valuation may be due to troubles with both labor and the company’s planned structure, CNBC reports. Several major investors have shied away from Deliveroo at the last minute. The largest, $1.8 trillion Legal and General Investment Management, is withdrawing based on both factors.