LONDON—Food-delivery startup Deliveroo Holdings PLC priced its initial public offering at the bottom of its range, valuing the Amazon . com Inc.-backed company at £7.6 billion, equivalent to around $10.5 billion, after its profit outlook came under increased scrutiny.

The company, the U.K.’s answer to DoorDash Inc., said Tuesday it would sell shares at £3.90 apiece, below its initial target of as much as £4.60. Deliveroo had already cautioned the sale would be at the lower end of expectations. It will start trading in London on Wednesday under the ticker ROO.

As part of the offering, Deliveroo is issuing about £1 billion worth of new shares, while existing shareholders, including Amazon, are also selling a portion of their stakes. The company has three anchor investors taking up 30% of the deal, a spokeswoman said.

Deliveroo’s IPO is among the biggest in Europe this year, but the company has hit some snags in its path to going public.

A handful of large institutional investors in the U.K., including Aviva Investors and Standard Life Aberdeen PLC, said last week that they wouldn’t buy Deliveroo’s shares amid concerns that recent legal challenges against Uber Technologies Inc. could undermine Deliveroo’s long-term profit growth.