Deliveroo shares opened at 16% lower than its initial offer price as the food delivery company debuted trading on the London Stock Exchange this morning.

The offer price was set at £3.90 per share for the IPO, at the lower end of expectations.

As MCA went to press, the stock was trading by as much as 30% down in early trading.

The company raised an initial £1.5bn of new money in its initial public offering (IPO).

A further tranche of shares that could be made available could increase the offer size to about £1.65bn if exercised in full.

The IPO values the company at almost £7.6bn, excluding any overallotment shares.

The food delivery company said it intended to use the proceeds to invest in growth opportunities, including bringing the food category online, marketplace innovation and business growth – in particular its Editions, Plus and Signature models.

Will Shu, founder and CEO of Deliveroo, said: “In this next phase of our journey as a public company we will continue to invest in the innovations that help restaurants and grocers to grow their businesses, to bring customers more choice than ever before, and to provide riders with more work.

“Our aim is to build the definitive online food company and we’re very excited about the future ahead.”