Tags: doordash | ipo | stock offering | tech | food delivery

DoorDash Aims to Raise $3.14B in Long-Awaited IPO

DoorDash Aims to Raise $3.14B in Long-Awaited IPO
(Mohamed Ahmed Soliman | Dreamstime.com)
 

Friday, 04 December 2020 08:39 AM

Food delivery startup DoorDash Inc. now expects to raise up to $3.14 billion in its U.S. initial public offering after boosting its price range on frenzied investor interest in technology stocks that have been boosted by the COVID-19 pandemic.

DoorDash, the biggest U.S. third-party delivery company for restaurants, plans to sell 33 million shares at between $90 and $95 apiece, it said in a regulatory filing on Friday. It had earlier targeted a price range of between $75 and $85 per share.

Founded in 2013, DoorDash is backed by the Vision Fund managed by Japanese tech giant SoftBank Group Corp, venture capital firm Sequoia Capital and sovereign wealth fund Government of Singapore Investment Corp.

Its market capitalization at the top end of the range would be around $30 billion.

A number of big Silicon Valley companies, including Palantir Technologies Inc. and Snowflake Inc., had blockbuster IPOs, riding on a stock market rally in the second half of the year that was fueled by stimulus money and hopes of an effective COVID-19 vaccine.

DoorDash's offering and a planned listing by home rental startup Airbnb Inc are set to make December a busy period for IPOs, while marking a strong finish to a record year.

San Francisco-based DoorDash plans to list its shares on the New York Stock Exchange under the ticker "DASH" this month. It had confidentially filed for an IPO in February.

The company and rivals Uber Eats, Grubhub Inc and Postmates Inc have benefited from a surge in demand for food delivery services due to widespread COVID-19 restrictions.

DoorDash recorded a surge in revenue growth in 2020 and posted its first quarterly profit, it disclosed in its IPO filing earlier last month.

Goldman Sachs and J.P. Morgan are the lead underwriters for the offering. 

© 2021 Thomson/Reuters. All rights reserved.


   
1Like our page
2Share
StreetTalk
Food delivery startup DoorDash Inc. now expects to raise up to $3.14 billion in its U.S. initial public offering after boosting its price range on frenzied investor interest in technology stocks that have been boosted by the COVID-19 pandemic.
doordash, ipo, stock offering, tech, food delivery
295
2020-39-04
Friday, 04 December 2020 08:39 AM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved