Glovo is working on its IPO for next year. The operation will mark an era, both because it is the first Spanish unicorn to jump onto the floor and because of its size, of more than 2,000 million. But it will also leave the pockets full not only of its shareholders, but also of its top management, its employees and some advisers, who will then be open to the possibility of liquidating an incentive plan endowed with 55 million euros.
In its six years of life, Glovo has tried to attract employees and managers to the company by offering them the possibility of taking advantage of the company’s potential, which is already present in more than twenty countries. The firm has deployed several compensation plans that some employees and their managers enjoy, among which its two founders stand out: Sacha Michaud and Óscar Pierre, its CEO.
These, which work as stock optionsThese are plans that grant their beneficiaries –according to the company, “employees, directors and advisers” – options that they can convert into shares. The last of these plans, which was approved in April by the shareholders’ meeting, assumes that managers and employees can get 2% of the capital.
The objective of these remuneration plans is, according to the company itself, “to offer certain employees, collaborators and executives” to be part of a remuneration plan whose objective is “to favor the creation of value for society”.
These incentive plans are only activated, yes, if the company reaches certain milestones. These are the merger of the company, the sale of substantial assets, the entry of a new majority shareholder, the distribution of dividends or, ultimately, an IPO.
Provisions
Precisely, Glovo is already working hand in hand with Morgan Stanley and Uria Menéndez on a possible IPO for 2022, as this newspaper published on October 1. The good results brought about by the pandemic (with a turnover that exceeded 350 million in 2020) have accelerated the process. Therefore, the company reflects in its accounts that it considers it possible to meet these milestones in the medium term. And it calculates how much the company should spend to remunerate its managers and employees at that time, according to the number of people assigned to these incentives and the company’s valuation, which already exceeds 2,000 million euros.
These annual accounts include a provision for 55.48 million, at the end of 2020. It is the amount that the company anticipated at that time that it would have to be spent to comply with this incentive plan in the event of a potential IPO or sale to a third party. In the last year, the firm increased that provision by 13.81 million, which adds up to the 41.67 million it had at the end of 2019.
The IPO will also be an opportunity not only to settle this bonus, but also for the directors who are also shareholders – such as the two founders or the Seaya Ventures fund, led by Beatriz González, who supported Glovo from the beginning and has a seat on the board of directors – can sell their securities with huge capital gains.
Currently, the first shareholder of Glovo is its German competitor Delivery Hero, with 47% of the capital according to the annual accounts. The rest is divided into a plethora of funds of venture capitalsuch as GP Bullhound, Drake Enterprise (owner of Papa John’s pizza chain), Korelya, Pernod Ricard and Mubadala, the sovereign wealth fund of Abu Dhabi. Also present are Luxor Capital (a significant shareholder of Delivery Hero) and Lugard Road Capital, which entered the last financing round, in which the company raised 450 million.
The companies that walk towards the Stock Market
Renewable. The market foresees that the green energy sector will once again be the great fishing ground for possible IPOs in 2022. In addition to the two frustrated operations in 2021, Capital Energy and OPDE, the market is keeping an eye on Repsol’s plans for its green subsidiary, where it is also considering adding a partner. It also observes the movements of Iberdrola with its offshore wind business, which the president, Ignacio Sánchez Galán, has already stated that he is considering segregating. Other smaller operations are also on the radar, such as Factor Energía and Windar.
Cirsa and Glovo. They are the only two non-renewable candidates to the Stock Exchange in 2022. At the moment. At Cirsa, Blackstone is studying its divestment four years after taking over Manuel Lao’s sleight of hand.
.