Legal & General Investment Management and M&G have joined the list of fund managers who have said they will not be buying shares in Deliveroo when it goes public next week.

Earlier this week Aviva said that it would not be investing in the delivery company, with David Cumming, chief investment officer at Aviva Investors, stating it would Deliveroo’s initial public offering for several reasons, with workers’ rights “is one of them”.

Cumming said there was a “combination of investment risk and social issues that affect our judgment whether the shares are a buy or not”.

While Andrew Millington, head of UK Equities at Aberdeen Standard, told ITV News that his firm would not buy the shares, because “we are concerned about the sustainability of the business model, including but not limited to its employment practices, and also the broader governance of the business”.

According to The Times, L&G has raised concerns over governance at Deliveroo, with the IPO to hand its founder Will Shu voting shares that would allow him to control the company and would last for three years.

It said that it had strongly urged the Financial Conduct Authority to bar companies with unequal voting structures from inclusion in FTSE indices.

Deliveroo is planning to go public with an IPO on the London Stock Exchange, which has been valued at up £8.8bn.

In its prospectus, Deliveroo warned it might have to rewrite its business model if it was forced to provide couriers with holiday and sick pay as well as pay the minimum wage and offer other benefits.

Legal & General Investment Management and M&G have joined the list of fund managers who have said they will not be buying shares in Deliveroo when it goes public next week.

Earlier this week Aviva said that it would not be investing in the delivery company, with David Cumming, chief investment officer at Aviva Investors, stating it would Deliveroo’s initial public offering for several reasons, with workers’ rights “is one of them”.

Cumming said there was a “combination of investment risk and social issues that affect our judgment whether the shares are a buy or not”.

While Andrew Millington, head of UK Equities at Aberdeen Standard, told ITV News that his firm would not buy the shares, because “we are concerned about the sustainability of the business model, including but not limited to its employment practices, and also the broader governance of the business”.

According to The Times, L&G has raised concerns over governance at Deliveroo, with the IPO to hand its founder Will Shu voting shares that would allow him to control the company and would last for three years.

It said that it had strongly urged the Financial Conduct Authority to bar companies with unequal voting structures from inclusion in FTSE indices.

Deliveroo is planning to go public with an IPO on the London Stock Exchange, which has been valued at up £8.8bn.

In its prospectus, Deliveroo warned it might have to rewrite its business model if it was forced to provide couriers with holiday and sick pay as well as pay the minimum wage and offer other benefits.

In response Deliveroo has said it has “received very significant demand from institutions across the globe”. ”The Roadshow began on Monday and the deal was covered by demand across the full price range by the end of the first morning. Demand has continued to build since then, including via our community offer, and we look forward to welcoming new shareholders next week alongside our currently highly respected existing investors,” it said.

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