Deliveroo cuts its IPO listing price to the bottom of the range - most big UK asset managers have said they won't invest

• Shares will be priced between £3.90 ($5.37) and £4.10 ($5.65), which would value it at £7.8 billion.
• Deliveroo said the decision was down to volatile market conditions.
• A number of major asset managers have said they won't invest at this point.

UK-based food delivery company Deliveroo said on Tuesday has cut the listing price for its shares that will go public the next day because of poorer market conditions.

Deliveroo, whose initial public offering will be the largest in London in the last decade, will price its shares at the lower end of its anticipated range between £3.90 ($5.37) and £4.10 ($5.65). The company, which is partly backed by Amazon said this was down to "volatile market conditions".

Various major UK based asset managers have said they will not invest in the food-delivery company's IPO and do not recommend it to their clients. Investors have shown concerns about the treatment of workers as well as Deliveroo's share ownership structure, which gives the company's CEO over 50% of the vote.

Legal & General Investment Management, the UK's largest fund manager, Aberdeen Standard Investors and Aviva are amongst those who have said they are unlikely to invest. A number of so-called gig economy companies, like Deliveroo, have been under fire over the employment status and conditions of their workers.

Many gig-economy companies count their drivers and riders as contractors and do not tend to extend paid holiday, sick leave or the minimum wage to them. The Independent Workers Union for Great Britain has kept the issue in the spotlight in the run-up to the IPO and has called for a strike the week after Deliveroo goes public. Ride hailing service Uber recently lost a major court case that ruled the company had to treat its drivers as employees and provide benefits.

Deliveroo had aimed to price the IPO as high as £4.60 ($6.32). The company, which will list on the London Stock Exchange under the ticker "ROO" from Wednesday morning, said it had seen strong global demand for its offering.

"The deal is covered multiple times throughout the range, led by three highly respected anchor investors. Given volatile global market conditions for IPOs, Deliveroo is choosing to price responsibly and at an entry point that maximizes long-term value for our new institutional and retail investors," the company said in a statement.