Deliveroo is reported to have slashed almost £1bn from the top end of its forthcoming initial public offering (IPO) to £7.6bn-£7.85bn.

The takeaway delivery business attributed the lower valuation to the “volatile” state of the market.

The company, which is raising £1bn of new money, is to price its shares at between 390p and 410p when it starts conditional trading tomorrow.

The decision to price at the bottom of the range comes as Aviva, Legal & General, Aberdeen Standard and M&G say they will not take part.

Some City investors are concerned about the power of Will Shu, the co-founder and chief executive, whose shares will carry 20 times as many votes as those of other investors.

Others have raised questions over the employment status of the company’s 100,000 deliverers, who are treated as independent contractors.

A Deliveroo spokeswoman claimed that the company had received “very significant demand from institutions across the globe”, and that the book was “covered multiple times throughout the range, led by three highly respected anchor investors”.

She added: “Given volatile global market conditions for IPOs, Deliveroo is choosing to price responsibly within the initial range and at an entry point that maximises long-term value for our new institutional and retail investors.”