The company had initially hoped to raise up to £8.8bn from the IPO.It is to price its shares at between 390p and 410p when it starts conditional trading tomorrow (31 March).
Deliveroo has attributed the lower valuation to the “volatile” state of the market.
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 says the company had received “very significant demand from institutions across the globe”, and that “three highly respected anchor investors” were involved in the IPO.
“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,” she says.