Shares of GrubHub Inc., an online and mobile food-ordering service, fell Monday after the company filed to sell 10 million shares in a secondary offering, giving insiders an early chance to unload their stakes after an April initial public offering.
The shares declined 8.4 percent to $39.16 at the close in New York, the steepest drop since April 10. GrubHub stock has gained 51 percent since the Chicago-based company first sold shares to the public at $26 each on April 3.
GrubHub plans to sell 1.25 million shares in the offering, according to a filing today with the U.S. Securities and Exchange Commission. The remaining 8.78 million shares will be sold by insiders, including members of the company’s board and management, who otherwise wouldn’t be allowed to sell shares yet because of a lockup period that typically restricts early investors after an IPO. The underwriters for the IPO have agreed to waive the lockup rules, GrubHub said.
GrubHub has been quickly expanding its empire of online food ordering and delivery, and last year acquired rival Seamless.com. The company now has 30,000 restaurants in its network.
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